Why Lumen Technologies Stock Jumped 77.3% Today

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Shares of Lumen Technologies (NYSE: LUMN) got a huge boost today from another company's earnings report. Corning (NYSE: GLW) announced that it's selling 10% of its fiber capacity for the next two years to Lumen, and investors loved the news. Shares jumped as much as 77.3% in parabolic trading mid-day before falling back to close the day up 38%. Lumen's Corning deal Last week, Lumen announced that it has partnered with Microsoft (NASDAQ: MSFT) to "enable digital transformation" of the company's infrastructure. That will include access to Lumen's fiber network, as well as adding new fiber on new and existing routes. The idea is to build faster connections between data centers, a key to artificial intelligence advances like building larger and more complex models. While no terms were announced, investors are seeing this as a new winner in the battle for AI resources. Volatility and short-term wins Part of the bounce higher today may have simply been a delayed reaction to the Microsoft news and solidification of the Corning supply deal. That then may have caused a short squeeze, given that 13.9% of shares outstanding had been sold short. But that bounce faded quickly. The main caution with Lumen Technologies is the fact that the company's revenue is falling and it's losing money quickly. This could be a turnaround play, but it may also be a great headline with little fundamental improvement to back it up. That's too much risk for me today. Should you invest $1,000 in Lumen Technologies right now? Before you buy stock in Lumen Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lumen Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $683,777!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of July 29, 2024 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends Corning and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why Lumen Technologies Stock Jumped 77.3% Today was originally published by The Motley Fool