Why Lumen Stock Plummeted Today
Lumen (NYSE: LUMN) stock sank in Tuesday's trading. The company's share price ended the daily session down 14.5%, according to data from S&P Global Market Intelligence.
Lumen fell today following a new short report on the stock published by Kerrisdale Capital. The short-seller revealed it had made an investment betting against the telecom company and laid out reasons it believed recent bullish momentum for the stock was unwarranted.
Even with today's pullback, Lumen stock is still up big this year thanks to excitement surrounding the company's artificial intelligence (AI) opportunities. The company has already secured roughly $5 billion in contracts to provide high-speed fiber services to data centers, and it has said it could have $7 billion in additional deals in the works. But Kerrisdale Capital doesn't think AI contracts will make Lumen's turnaround dreams a reality.
Source Fool.com
