Why Lumen Technologies Plunged Today
Shares of Lumen Technologies (NYSE: LUMN) were falling hard on Tuesday, down 9.1% as of 2:23 p.m. EDT.
Lumen is a debt-riddled company whose stock became distressed earlier this year. However, an early-year deal to extend its debt maturities, combined with long-term deals for AI (artificial intelligence) networking, caused the stock to skyrocket in early August.
But weeks after the stock's big pop, skeptics are publicly throwing cold water on the AI-fueled turnaround prospects. Today, another short-seller voiced skepticism as to how meaningful those AI deals will really be in tackling the company's massive debt load. This was the second short-seller to publish a note in just the past week. That added to general market fears today, resulting in a big drop.
Source Fool.com
