Lumen Technologies Stock Declines Amid Broader Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy LUMN?
Source: Benzinga
Lumen Technologies Inc's stock fell 6.51% as it crossed below the 5-day SMA, reflecting a challenging trading environment.
The decline comes amid broader market weakness, with the Nasdaq-100 down 1.78% and the S&P 500 down 1.71%. This sector rotation has impacted Lumen's stock performance, despite its recent partnership with Palantir, which was expected to enhance its market position in AI technologies. Investors are currently cautious, leading to a sell-off in the stock.
The implications of this decline suggest that while Lumen has potential growth drivers, such as its AI infrastructure initiatives, the current market sentiment is overshadowing these positives. Investors may need to reassess their positions as the market continues to fluctuate.
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Analyst Views on LUMN
Wall Street analysts forecast LUMN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LUMN is 8.33 USD with a low forecast of 7.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
0 Buy
5 Hold
1 Sell
Hold
Current: 6.230
Low
7.00
Averages
8.33
High
11.00
Current: 6.230
Low
7.00
Averages
8.33
High
11.00
About LUMN
Lumen Technologies, Inc. is a networking company, which connects people, data, and applications quickly and securely. The Company is engaged in providing an array of integrated products and services to its domestic and global business customers and its domestic mass market customers. It operates through two segments: Business segment and Mass Markets segment. The Company conducts its operations under four brands: Lumen, which is its flagship brand for serving the enterprise and wholesale markets, including its Private Connectivity Fabric (PCF) network architecture, Lumen Digital products, and its priority services including Edge, Network-as-a-Service and cybersecurity; Quantum Fiber, which provides fiber-based broadband services to residential and small business customers; CenturyLink, which is engaged in providing primarily mass-marketed copper-based communications services, and Black Lotus Labs, which is its cyberthreat research and intelligence arm.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Customer Growth Potential: The addition of 8 million new users is expected to boost AT&T's fiber customer base from 10.6 million to 13.6 million, translating to a 30% increase that could generate nearly $3 billion in annual revenue, alleviating pressures from a saturated wireless market.
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- Revenue Expectations: With fiber customers averaging $73 per month, this could translate into nearly $3 billion in additional annual revenue, strengthening AT&T's profitability and ability to sustain dividend payments.
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- Financial Outlook: While the fourth-quarter adjusted earnings per share exceeded expectations, revenue only met them, with management projecting full-year free cash flow between $1.2 billion and $1.4 billion, including $300 million to $450 million in non-recurring tax refunds.
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