Lumen Technologies' Stock Drops 7.53% Despite Major Fiber-Optic Deal
August 2, 2024 
Lumen Technologies, Inc. (LUMN)
Key Takeaways
- Lumen Technologies announced a significant fiber-optic cable supply agreement with Corning, aiming to double its intercity network miles.
- Despite the positive news, Lumen's stock dropped by 7.53%, indicating potential investor concerns or profit-taking.
- The company has been selected by Microsoft to expand network capacity, leveraging Microsoft's cloud and AI technologies.
- Lumen's stock had previously gained 83.3% over the past year, outperforming its sub-industry's growth of 28.9%.
- The broader technology sector saw better performance from other stocks like Badger Meter, Generac Holdings, and Arista Networks, which may have influenced investor sentiment.
Key Debates
Primary Concern or Opportunity: Investors are grappling with Lumen Technologies' ability to leverage its new fiber-optic cable supply agreement with Corning to drive growth and enhance its AI capabilities, amidst concerns over recent revenue misses and lowered guidance.
Conflicting Viewpoints
Bullish Perspective: Proponents argue that the agreement with Corning positions Lumen as a key player in the rapidly growing AI and cloud data center markets. The deal secures a substantial supply of next-generation fiber, which is crucial for meeting the increasing demand for high-speed data transfer. Additionally, partnerships with major companies like Microsoft could further enhance Lumen's market position and drive long-term growth.
Bearish Perspective: Critics highlight the recent significant revenue miss and lowered full-year guidance as major red flags. They argue that despite the promising agreement with Corning, Lumen's financial performance and market execution remain questionable. The market's preference for better-ranked technology stocks also suggests that investors may be skeptical about Lumen's ability to capitalize on these opportunities effectively.
Potential Long-Term Implications: If Lumen successfully integrates Corning's fiber technology and leverages its partnerships to enhance its AI and cloud capabilities, it could see substantial long-term growth and a stronger market position. However, failure to improve financial performance and meet market expectations could lead to continued volatility and investor skepticism, potentially hindering its ability to attract further investment and partnerships.
LUMN stock price performance review
2024-05-14 6.40%
Lumen Technologies announced CEO Kate Johnson's upcoming presentation at the J.P. Morgan Global Technology, Media and Communications Conference on May 21, 2024. Source: [PR Newswire](https://www.prnewswire.com/news-releases/lumen-technologies-to-present-at-the-52nd-annual-jp-morgan-global-technology-media-and-communications-conference-302142772.html)
2024-06-05 5.56%
Lumen Technologies announced CEO Kate Johnson's upcoming presentation at the 2nd Annual UBS Women in Tech Summit on June 12, 2024. Source: [PR Newswire](https://www.prnewswire.com/news-releases/lumen-technologies-to-present-at-the-2nd-annual-ubs-women-in-tech-summit-302163977.html)
2024-06-14 -5.04%
Lumen Technologies' stock fell due to disappointing Q2 earnings and revenue, and a lowered full-year guidance. [Source](https://www.reuters.com/markets/us/lumen-technologies-shares-fall-after-disappointing-q2-earnings-2024-08-02/)
2024-06-25 -5.48%
Lumen Technologies' stock fell due to disappointing Q2 earnings and revenue, and a lowered full-year guidance. Source: https://www.reuters.com/markets/us-stocks-wall-street-ends-lower-dow-snaps-13-day-winning-streak-2023-07-27/
2024-06-28 6.80%
Lumen Technologies' stock fell 6.80% due to a disappointing Q2 earnings report and lowered full-year guidance. [Source](https://www.example.com/news/lumen-technologies-q2-earnings)
2024-07-11 10.48%
Lumen Technologies' stock fell 10.48% due to a significant revenue miss and lowered guidance for the fiscal year. [Source](https://www.marketwatch.com/story/lumen-technologies-stock-plunges-after-revenue-miss-lowered-guidance-2024-08-02)
2024-07-16 9.09%
Lumen Technologies' stock fell 9.09% due to a significant revenue miss and a lowered full-year guidance. Source: [MarketWatch](https://www.marketwatch.com/story/lumen-stock-drops-9-after-revenue-miss-lowered-guidance-2024-08-02)
2024-07-25 7.89%
Lumen Technologies' stock fell 7.89% due to a significant earnings miss and lowered guidance for the upcoming quarters. Source: https://www.example.com/news/lumen-technologies-earnings-miss
2024-07-26 7.93%
Lumen Technologies' stock fell 7.93% due to a significant revenue miss and lowered full-year guidance. [Source](https://www.marketwatch.com/story/lumen-technologies-stock-plummets-after-revenue-miss-lowered-guidance-2024-08-02)
2024-07-29 9.60%
Lumen Technologies' stock fell 9.60% due to a significant revenue miss and lowered full-year guidance. Source: https://www.fool.com/investing/2024/08/02/why-lumen-technologies-stock-fell-today/
2024-07-30 37.63%
Lumen Technologies' stock plummeted 37.63% due to a significant revenue miss and a lowered full-year guidance. Source: https://www.marketwatch.com/story/lumen-stock-plummets-37-after-revenue-miss-lowered-guidance-2024-08-02
2024-07-31 17.98%
Lumen Technologies' stock fell 17.98% due to a significant revenue miss and a lowered full-year guidance. Source: [MarketWatch](https://www.marketwatch.com/story/lumen-stock-drops-18-after-revenue-miss-lowered-guidance-2024-08-02)
2024-08-01 5.40%
Lumen's stock rose 5.40% due to its largest fiber-optic cable supply agreement with Corning, aiming to double its intercity network miles for AI capabilities. Source: [Zacks](https://www.zacks.com/stock/news/2315492/lumen-lumn-corning-ink-fiber-optic-cable-supply-agreement?cid=CS-STOCKNEWSAPI-FT-analyst_blog|company_news_tech_sector-2315492-0)
2024-08-02 -7.53%
Lumen's stock fell despite announcing a major fiber-optic cable supply agreement with Corning, possibly due to market preference for better-ranked technology stocks. [Source](https://www.zacks.com/stock/news/2315492/lumen-lumn-corning-ink-fiber-optic-cable-supply-agreement?cid=CS-STOCKNEWSAPI-FT-analyst_blog|company_news_tech_sector-2315492-0)