Lumen Technologies (NYSE:LUMN) Stock Dips 16% Over Month As Acquisition Talks With AT&T Surface

Simply Wall St.
30 Mar

Lumen Technologies experienced a 16% decline in its stock price over the past month. This movement coincides with recent collaborations and potential acquisition talks. The successful trial of a 1.2 terabit wavelength service in partnership with Ciena, which demonstrates Lumen's technological advancements, could have affected investor sentiment. Additionally, reports of acquisition discussions with AT&T for its consumer fiber operations may have added to market uncertainty. Broader market declines, reflected by a 1.8% fall over a weeklong period, alongside tariff-related economic concerns, also compounded pressures on Lumen's stock. These factors likely contributed to the company's overall price move.

We've spotted 2 risks for Lumen Technologies you should be aware of, and 1 of them is a bit concerning.

NYSE:LUMN Earnings Per Share Growth as at Mar 2025

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Lumen Technologies achieved a significant total return of 152.56% over the last year. This performance surpassed both the US Telecom industry, which returned 29.1%, and the broader US market's 5.5%. Lumen's substantial debt reduction, including a US$1.6 billion decrease in 2024 and an additional US$200 million in redemption notices, bolstered its financial stability. Furthermore, partnerships with tech giants like Microsoft, AWS, and Meta improved its revenue prospects by generating US$8.5 billion in closed sales, supporting free cash flow amid ongoing strategic transformations.

The company's focus on expanding network capabilities included the addition of 500,000 new Quantum Fiber units, enhancing market presence. Collaborations, such as the trial deployment of a 1.2 terabit wavelength service with Ciena and integration with Flexential, positioned Lumen for future growth in AI and cloud demands. A US$4.3 million contract with the New Mexico Office of Broadband Access also underscored Lumen's commitment to expanding connectivity solutions. These initiatives contributed to the company's impressive long-term share performance.

Gain insights into Lumen Technologies' future direction by reviewing our growth report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:LUMN.

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