Should Investors Buy Lumen Technologies Stock?

Core Viewpoint - Lumen Technologies has experienced a significant turnaround in 2024, primarily driven by contracts with major tech companies for its Private Connectivity Fabric (PCF) service, despite ongoing financial challenges and a history of struggles in the telecom sector [1][4]. Company Overview - Lumen, previously known as CenturyLink, faced substantial debts and an uncertain future due to declines in legacy telecom businesses and the need to sell assets to remain viable [3]. - The company has secured contracts with Microsoft, Meta Platforms, and Amazon for its PCF, which enhances data center connectivity [4]. Financial Performance - Lumen's stock has increased approximately 125% since its low in late April, reflecting investor optimism despite persistent financial issues [2][6]. - In the first half of 2025, Lumen reported a 3% year-over-year revenue decline to just under $6.3 billion, alongside a net loss exceeding $1.1 billion due to goodwill impairment and high interest expenses [8]. - The company carries nearly $18 billion in debt against a market cap of $7 billion, which poses a significant financial burden [9]. Future Outlook - Analyst forecasts suggest continued revenue declines, projecting a 6% decrease in 2025 and an additional 4% drop in 2026, which may impact stock price growth in the near term [9].