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Lumen stock took a hit this week, but it’s still up more than 50% in 2025.
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Lumen’s valuation has soared thanks to AI-based businesses, but investors have less confidence in artificial intelligence-based stocks.
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Macroeconomic and geopolitical dynamics also hurt the company’s valuation this week.
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10 stocks we like better than Lumen Technologies ›
Lumen (NYSE:LUMN) The stock was hit by a major decline in its valuation during the last week of trading. The company’s share price fell 24% during the period. On the same section, the S&P500 managed to climb by 0.1%, and the Nasdaq CompositeThe level of decreased by 0.5%.
The past week of trading was not kind to artificial intelligence (AI) stocks, and Lumen saw a significant pullback amid broader selling trends. Despite a sharp contraction in valuations this week, the company’s stock price is still up 50.5% this year.
Lumen stock was hit by a growing wave of bearish momentum as investors repositioned their holdings in response to concerns that AI stock prices were overheated. On the heels of an incredible rally over the last year, some investors have chosen to exit Lumen shares and realize significant gains at an uncertain time for the market.
In addition to valuation issues related to the IA category and certain companies, Lumen shares were sold due to macroeconomic and geopolitical risk factors. Investors are less confident that the Federal Reserve will cut interest rates next month, and fears of a possible invasion of Taiwan by China this decade have been thrust back into the spotlight.
Lumen has achieved big wins with its Private-Connectivity Fabric (PCF) technologies – with major customers and partners including Microsoft And Metaplatforms. The company appears poised for substantial sales growth in 2026, but its valuation could continue to be highly volatile in the near term as investors hesitate on how to value AI stocks.
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