Lumen Technologies (lumen technologies) stock price continues to soar.
According to the Zhitong Finance APP, the stock price of Lumen Technologies (lumen technologies) continues to soar. Previously, the company announced that it had received new business worth $5 billion to ensure fiber optic service capacity, including data centers that power artificial intelligence (AI) applications.
Lumen also revealed that it will soon receive an additional $7 billion in sales to meet the growing demand.
In the past few weeks, the company announced long-term agreements with Microsoft (MSFT.US) and Corning (GLW.US).
Within the next two years, Lumen will reserve 10% of Corning's global fiber optic capacity to connect data centers that support artificial intelligence, and Lumen's private connection structure will also connect to Microsoft's data centers.
These positive developments prompted Goldman Sachs to upgrade its rating on Lumen from "sell" to "neutral".
Goldman Sachs analyst James Schneider said: "Our previous view of Lumen was that its traditional revenue stream would decline sharply, and the corresponding EBITDA growth would be faced with adverse factors - we continue to see significant risk of decline in these traditional businesses."
"However, we believe that Lumen's latest business announcement provides the company with clear, long-term cash flow, which will increase equity value," he added. "Therefore, we believe that the stock can maintain a higher P/E ratio than we previously expected."
Lumen CEO Kate Johnson said on Tuesday's earnings conference call: "Lumen has been selected by some of the most important technology companies on the planet as a trusted artificial intelligence network company." "So far, Lumen has signed cooperation agreements worth over $5 billion and sees opportunities of nearly $7 billion. We believe that Lumen's private connection structure services will bring significant positive changes to the company."
Seeking Alpha analyst Chris Lau rates Lumen as a "strong buy." He pointed out: "The company needs to consolidate an additional $7 billion in revenue to prove the recent stock price increase is reasonable."
Overall, Wall Street analysts give Lumen a "hold" rating.
As of press time, Lumen's early trading rose 41.20% to $7.06. Since early July, the stock has risen as much as 550%.