Lumen Technologies Stock Jumps On Strong Q4 Earnings, Company Says It's Building The 'Backbone' For The AI Economy

Lumen Technologies (NYSE: LUMN) stock surged on Tuesday, February 4, 2025, following the company's release of strong Q4 earnings. The company reported a net income of $85 million for the fourth quarter 2024, compared to a net loss of $(1.995) billion in the same period last year. Lumen's earnings per share (EPS) for the quarter was $0.09, compared to a loss per share of $(2.03) in Q4 2023. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter was $1.052 billion, compared to $1.099 billion in the same period last year.

Lumen's CEO, Kate Johnson, attributed the company's strong performance to its strategic shift towards AI infrastructure. The company has been investing in its network capacity and providing advanced network solutions to support the growing demand for AI services. Lumen's partnership with Meta, announced in October 2024, is a key example of this strategy. The partnership involves Lumen providing long-term network capacity for Meta's AI ambitions, including dedicated interconnection for Meta's industry-leading infrastructure.



Lumen's financial performance in Q4 2024 reflects the company's strategic shift towards AI infrastructure. The company's revenue of $3.329 billion in the quarter was down from the same period last year but was a significant improvement from the previous quarter's revenue of $3.22 billion. This growth can be attributed to Lumen's partnerships with major tech companies and the increased demand for high-speed fiber-network solutions.



Lumen's strong Q4 earnings and strategic shift towards AI infrastructure have led analysts to upgrade their price targets for the company's stock. The average price target for Lumen Technologies stock is now $4.89, with a low estimate of $2.00 and a high estimate of $8.00. This represents a decrease of -2.98% from the current stock price of $5.04.

Analysts have also upgraded their ratings for Lumen Technologies stock, with the average rating now "Hold." This means that analysts believe Lumen's stock is likely to perform similarly to the overall market.

In conclusion, Lumen Technologies' strong Q4 earnings and strategic shift towards AI infrastructure have led to a surge in the company's stock price. The company's partnerships with major tech companies and increased demand for high-speed fiber-network solutions have driven this growth. As Lumen continues to invest in its network capacity and provide advanced network solutions, the company is well-positioned to capitalize on the growing demand for AI services and build the 'backbone' for the AI economy.