Lumen Technologies stock faced a significant valuation pullback, dropping 24% in the last week of trading. Despite this, the company’s share price has still risen more than 50% in 2025, outperforming the S&P 500 and Nasdaq Composite.

Investors have been repositioning their holdings amid concerns that AI stock prices were overheated, leading to a bearish wave affecting Lumen stock. Macro and geopolitical risks also contributed to the sell-off, as confidence waned in potential Federal Reserve actions and geopolitical tensions.

Lumen has seen success with its private-connectivity-fabric (PCF) technologies, attracting major clients like Microsoft and Meta Platforms. Sales growth is expected in 2026, but volatility remains as investors navigate valuation uncertainties in the AI market.

Consideration is advised before investing in Lumen Technologies, as the Motley Fool Stock Advisor team recommends other stocks for potential high returns. Past recommendations have yielded significant profits, emphasizing the importance of thorough research and informed decision-making.

Read more at Yahoo Finance: Why Lumen Stock Plummeted This Week