Lumen Technologies shares soar 77.3%
$Lumen Technologies(LUMN.US$ Today, the stock price of rose significantly due to other companies' financial results reports. $Corning(GLW.US$ It was announced that 10% of its fiber capacity for the next 2 years will be sold to lumens, and investors liked this news.
The stock price surged by 77.3% due to intraday parabolic trading, then fell and the closing price rose 37.63%.
Lumen's agreement with Corning
Last week, lumens $Microsoft(MSFT.US$ In partnership with, it was announced that it would “enable digital transformation” of the company's infrastructure. This includes accessing Lumen fiber networks and adding new fibers to new and existing routes.
This is building a high-speed connection between data centers, which is the key to advances in artificial intelligence, such as constructing larger and more complex models.
Terms have not been announced, but investors see this as a new winner in the scramble for AI resources.
Volatility and short-term wins
Part of today's rise may just be a delay in response to Microsoft news and Corning's supply agreement signing. Considering that 13.9% of the issued shares were sold short, a short squeeze may have occurred. However, that backlash soon faded away.
Lumen Technologies' main caveat is the fact that the company's earnings are falling, and it will soon be in the red. There is also a possibility that this will improve, but it may be a great headline with few fundamental improvements to support it. The risk is too great for me today.
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