Key Statistics For Lumen Technologies Action
- Price change: +29.4%
- Current price: ~$8
- High Street Goal: $10
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What happened?
Actions of Lumen Technologies, Inc. (LIGHT) exploded 29.4% to close at nearly $8.06 on Friday, driven by a huge fourth-quarter profit that confirmed its transformation into a key player in AI infrastructure.
The company reported Adjusted EPS of $0.23crushing Wall Street estimates of a $0.21 loss and proving its cost-cutting measures are working faster than expected.
The announcement of $2.5 billion in new Private Connectivity Fabric (PCF) dealssignaling insatiable demand from hyperscalers like Microsoft (NASDAQ:MSFT) for dedicated AI fiber networks.
Management also confirmed the closing of its $5.75 billion fiber sale to AT&Ta move that allowed them to pay down $4.8 billion in debt and significantly reduce risk to their balance sheet.
Analysts at Goldman Sachs raised their target, citing “significant upside” as the company leverages its unique long-distance fiber optic network to serve power-hungry AI data centers.
The title also benefited from its partnership with Palantir (NYSE:PLTR)integrating Lumen’s network into Palantir’s AIP platform to secure government and enterprise contracts.
While short interest remains high, the sudden profitability and liquidity infusion has triggered a classic “short squeeze”, forcing bears to cover as the “AI Fiber” narrative takes hold.
View analyst growth forecasts and price targets for Lumen Technologies stock (it’s free!) >>>
Are Lumen technologies undervalued today?
During the earnings conference call, CEO Kate Johnson said Lumen had successfully transformed from a telecommunications relic to the backbone of the AI economy.
She said: “We are the trusted network for AI… Our physical expansion is not just about miles of fiber; this is to allow the fastest time to get the first token. »
Regarding the massive demand for fiber optics, management emphasized that AI workloads require a fundamentally different network architecture than the traditional Internet.
Chief Financial Officer Chris Stansbury said: “The $2.5 billion in new deals creates a strategic advantage… We are growing alongside the most influential companies in the AI race. »
The management team believes that as “sovereign AI” clouds and private enterprise models proliferate, the value of their unique conduit network will only increase.
Read the full transcript from Lumen on TIKR to see the AI strategy >>>
According to the Analyst Estimatesthe gathering at $8 could well be just the start of a larger revaluation as the market digests the improved capital structure.
- High Street Goal: $10
- Current price: ~$8
- Upside potential: +24.1%
The investment case for Lumen is a high-risk, high-reward bet on the “physical layer” of artificial intelligence.
If Lumen can continue to execute its “land and scale” strategy with hyperscalers, the gap to $11 could close quickly as institutional money returns to the name.
Conclusion: The fiber backbone of the AI revolution. With a 24.1% upside from the $10 high target, Lumen Technologies emerges as a critical infrastructure play for investors seeking direct exposure to the AI data boom.
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Disclaimer:
Please note that articles on TIKR are not intended as investment or financial advice from TIKR or our content team, nor do they constitute recommendations to buy or sell any stocks. We create our content based on TIKR Terminal investment data and analyst estimates. Our analysis may not include recent company news or important updates. TIKR has no position in the stocks mentioned. Thanks for reading and happy investing!
