Lumen Technologies’ stock concluded Friday’s trading session with a slight decline, despite experiencing significant increases earlier in the day. Initially, the telecommunications company’s share price rose by as much as 7.9% but eventually closed the day down 0.5%.
The early surge in Lumen’s stock price was attributed to an analyst’s upgrade in ratings. This boost, however, could not be sustained as the trading day progressed, with macroeconomic concerns taking precedence in investor considerations.
Wells Fargo initiated new coverage of Lumen prior to the market opening. The firm’s lead analyst, Eric Luebchow, adjusted his rating from underweight to equal weight and maintained a one-year price target of $5 per share. Luebchow’s assessment suggests a potential upside of approximately 7%. The analyst believes that the sale of Lumen’s Quantum Fiber division and new contracts for its Private Connectivity Fabric offerings might help enhance the company’s debt situation and free cash flow generation.
Despite the initial gains, Lumen’s shares declined as broader macroeconomic challenges became a focus. Newly released data pointed to several bearish indicators for the U.S. economy. The University of Michigan’s tracking indicated a drop in consumer confidence for January, while existing home sales decreased more than anticipated. Similarly, S&P Global’s tracking revealed weaker-than-expected outcomes for the manufacturing and service sectors.
Following this setback, Lumen’s stock has depreciated roughly 12% throughout 2025’s trading period, though it has risen over 200% over the past year. This growth has largely been driven by the company’s Private Connectivity Fabric technologies, with major companies like Microsoft and Meta Platforms purchasing from Lumen to support their artificial intelligence data center projects. Despite ongoing challenges in other business areas and a significant debt load, Lumen remains a risky investment. However, AI-related sales opportunities present considerable potential for upside if the company continues to secure contracts for its Private Connectivity Fabric offerings.