Lumen(LUMN) The Motley Fool·2025-02-24 23:26Core Viewpoint - Lumen's stock experienced a significant decline of 7.1% amid broader market bearishness, influenced by concerns over Nvidia's upcoming quarterly report and Microsoft's data center spending plans [1][2][4]. Group 1: Stock Performance - Lumen's share price closed down 7.1% on a day when the S&P 500 and Nasdaq Composite fell by 0.5% and 1.3%, respectively [1]. - The stock's decline is attributed to investor apprehension regarding Nvidia's fourth-quarter earnings report, which is expected to be pivotal for tech stocks [2][3]. Group 2: Market Influences - Nvidia is anticipated to report a net income of approximately 38 billion, making its results crucial for market sentiment [2]. - The potential for Nvidia to exceed sales and earnings targets could help restore bullish momentum in the tech sector [3]. Group 3: Company-Specific Concerns - Lumen's stock pullback is also linked to reports that Microsoft plans to reduce its data center expansion initiatives, raising concerns about the real-world value of AI investments [4]. - Lumen has benefited from contracts to provide private-connectivity technologies for Microsoft's AI data centers, and any significant cutbacks by Microsoft could weaken Lumen's growth outlook in this area [5].