Lumen Technologies stock drops 14% due to legacy business struggles and debt concerns.

From Nasdaq: 2025-01-14 08:38:00

Lumen Technologies, Inc.’s stock (LUMN) has dropped 13.7% in the past month, underperforming the S&P 500 and sub-industry. With LUMN currently trading 48.1% below its 52-week high, concerns arise about its future trajectory amidst legacy business woes and higher costs, as well as a debt-laden balance sheet.

Analysts have maintained their earnings estimates for LUMN for 2024 and 2025 unchanged. LUMN is trading below its moving averages, indicating a bearish sentiment. Despite this, the company’s incremental PCF deals and focus on Quantum Fiber business show promise for growth in cloud services and network capabilities.

LUMN aims for $1 billion in cost savings by 2027 through infrastructure simplification. The stock is trading at a significant discount compared to the industry. While LUMN’s ambitious plans and momentum in Quantum Fiber are positive, the heavy debt load and competitive AI space pose challenges for investors.

With opportunities in AI and infrastructure spending, LUMN’s stock may not be a prudent investment choice currently. Analysts remain cautious, suggesting a hold on the stock. For new investors, waiting for a better entry point could present a more favorable opportunity to invest in LUMN.



Read more at Nasdaq: Lumen Slips 14% in a Month: How Should You Play the Stock?