Lumen Technologies Stock Continues To Soar: What's Going On?

Lumen Technologies Inc LUMN shares are trading higher after the company reported better-than-expected results for the second quarter. Multiple analysts upgraded the stock following the print.

Q2 Earnings: Lumen reported second-quarter revenue of $3.268 billion, beating analyst estimates of $3.246 billion, according to Benzinga Pro. The company reported an adjusted loss of 13 cents per share, missing estimates for a loss of 6 cents per share.

Lumen said it generated adjusted EBITDA of $1.011 billion in the second quarter. The company reported net cash from operating activities of $511 million and free cash flow of negative $156 million.

“The rising demand of AI is requiring greater connectivity between data centers, and Lumen’s world class fiber network and forward-thinking digital services are positioning us to help drive the AI growth wave,” said Kate Johnson, president and CEO of Lumen Technologies.

“We feel confident in our future growth and business transformation as we look to enable the AI economy.”

Following the print, multiple analysts either upgraded or raised price targets on the stock.

• Goldman Sachs analyst James Schneider upgraded Lumen from Sell to Neutral and raised the price target from $1 to $4.

• MoffettNathanson maintained Lumen with a Sell and raised the price target from $1 to $3.

• JPMorgan analyst Sebastiano Petti upgraded Lumen from Underweight to Neutral.

It’s worth noting that Lumen stock soared approximately 93% on Tuesday after the company announced that it secured $5 billion in new business from customers looking to increase fiber capacity quickly, fueled by the rise of AI.

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LUMN Price Action: Lumen Technologies shares were up 44.6% at $7.23 at the time of publication, according to Benzinga Pro.

Photo: 3844328 from Pixabay.