One of this week’s top breakout sensations is still trending upward after an impressive surge. Lumen Technologies (NYSE:LUMN) stock began skyrocketing after markets opened yesterday.
The telecommunications firm had reported several key deals with prominent tech companies involving its artificial intelligence (AI) technology. In just 24 hours, Lumen has emerged as a key AI stock that investors can’t help but notice. While some wondered if LUMN stock would quickly fall back down, so far, it hasn’t happened. Shares have been rising steadily all day and look poised to continue trending upward.
What’s Happening With LUMN Stock
The company hasn’t reported any new catalysts to keep LUMN stock in the green. As such, today’s growth is a continuation of yesterday’s momentum as investors rush to pile into the rising star. As of this writing, shares are up 27% for the day and have managed to shake off some early trading volatility.
This growth comes even after Lumen reported less than positive second-quarter earnings, with quarter revenues falling 10.7% year-over-year. Previously, the company has missed Wall Street estimates for Q1 revenue. However, the fact that LUMN stock has managed to continue rising in spite of this suggests that the company is well-positioned for growth. Per Zacks Investment Research:
“As AI needs surge, large companies across various industries are urgently seeking fiber capacity, which is becoming highly valuable and potentially scarce. Recently, Microsoft chose Lumen to enhance its network capacity and support the development of next-generation applications for the company’s global platform customers. In response to this substantial demand, Lumen plans to more than double its intercity network miles in the next five years and offer access to a substantial amount of installed dark fiber.”
It’s hard to estimate how long LUMN stock can keep rising. However, the company has made it clear that it has the type of technology that sector leaders want and need. Lumen is no longer a penny stock, and AI enthusiasm could easily keep it above the $5 mark, making it a tech stock to watch through the coming quarters and beyond.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
