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Why Lumen Technologies Stock Plummeted Today
The Motley Foolยท2025-03-25 19:58

Core Viewpoint - Lumen's stock experienced a significant decline due to reports of a potential sale of its consumer fiber business to AT&T, with shares dropping as much as 18.7% during the trading day and closing down 10% [1][2]. Group 1: Potential Sale Impact - AT&T is reportedly considering purchasing Lumen's consumer fiber business for approximately $5.5 billion, which could provide Lumen with much-needed cash to address its debt issues [2][3]. - The sale of the consumer fiber unit is concerning for investors as it represents a strong segment within Lumen's otherwise struggling consumer business, and its loss could weaken the overall business significantly [3][4]. Group 2: Future Implications - If the sale occurs, it may indicate a broader strategic shift for Lumen, potentially leading to further divestitures of its consumer business or even an exit from that market altogether [4]. - Despite the recent stock decline, Lumen's shares have increased by approximately 163% over the past year, driven by growth in fiber sales to cloud hyperscalers like Microsoft and Meta Platforms, particularly in relation to AI data centers [5].