What Happened?
Shares of telecommunications infrastructure company Lumen Technologies (NYSE: LUMN) fell 18.5% in the morning session after the company reported second-quarter revenue that fell short of Wall Street estimates and declined from the previous year. The telecommunications firm posted revenue of $3.09 billion, just under the $3.11 billion analysts anticipated and down 5.4% from the same period last year. The shortfall hit both of its major divisions, with Business segment revenue decreasing 3.4% and its Mass Markets segment falling 12.8%. These results overshadowed some positive developments, including a smaller-than-expected adjusted loss and a substantial increase in the company's full-year free cash flow guidance. The weak report landed amid broader economic jitters after a disappointing U.S. jobs report fueled concerns of a slowdown, likely amplifying the negative investor reaction.
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What Is The Market Telling Us
Lumen’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. But moves this big are rare even for Lumen and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 5.8% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Lumen is down 34.3% since the beginning of the year, and at $3.69 per share, it is trading 63.6% below its 52-week high of $10.12 from November 2024. Investors who bought $1,000 worth of Lumen’s shares 5 years ago would now be looking at an investment worth $376.02.
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