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Why Lumen Stock Is Soaring Today
The Motley Foolยท 2025-05-05 19:44
Core Insights - Lumen's stock price increased by 11% on a day when major indices like the S&P 500 and Nasdaq Composite declined, indicating strong market interest [1] - Despite being down approximately 21% year-to-date, Lumen's stock has appreciated by 219% over the past year, showcasing significant recovery [1] - Raymond James upgraded Lumen's stock rating from market perform to outperform, setting a one-year price target of $4.50 per share, suggesting an additional upside of about 7% [3] Business Developments - Lumen is experiencing growth in sales of fiber internet infrastructure and services, particularly in support of AI data centers, which is a promising area for the company [4] - There are reports of a potential sale of Lumen's consumer fiber business to AT&T for $5.5 billion, which could indicate a strategic shift away from the consumer market [5] - The potential divestiture of the consumer unit may help Lumen reduce its substantial debt and allow a greater focus on the enterprise market, which has been a key driver of performance [5]