Lumen Technologies drops 25% as profit-taking accelerates after record stock rally 📉

Lumen Technologies (LUMN.US) loses 25% today as profit-taking accelerates; stock is dropping today but since 1 January 2024 is gaining 170% year-to-date. The company informed about $5 billion in secured sales, due to its fiber business segment used in AI data centres and additional $7 billion deals which may be yet to come. Despite much weaker than expected Q2 earnings, Wall Street sees fiber business as completely transforming for the company, lifting expectations of revenues and margins for next quarters. However, directly positive effects from the fiber market demand may be more long term catalysts, while the company situation today is still hard.

Lumen Technologies (H1 interval)

Lumen shares test 38.2 Fibonacci retracement, level, near $5 per share. Yesterday, the stock peaked after a huge rally, above $7 per share.

Source: xStation5