• Lumen Technologies (NYSE:LUMN), a global communications services stock, has gotten a lot of attention on Reddit as of late.
• The company recently partnered with Microsoft to expand their capabilities to meet the demand for AI.
• Lumen stock has returned more than 90 percent since its peak in 2007, but is up more than 200 percent since announcing its deal with Microsoft.

After Google’s Gemini made the list of the most popular stocks on Reddit today, I had to go it alone and scroll through looking for a trend. A flurry of mentions surfaced through the subreddit, r/wallstreetbets, which is the epicenter of the pandemic’s meme-stock obsession. Lumen Technologies (NYSE: LUMN)with a market capitalization of US$5.45 billion, the global communications services stock has seen Enough attention Since then in investment related sub-reddits Partnership with Microsoft (NDAQ:MSFT) Announced on July 24.

The partnership will allow Lumen to improve its operations by integrating Microsoft’s cloud and artificial intelligence (AI) technology, resulting in an expected US$20 million increase in cash flow next year, while Microsoft improves its data center network. will rely on Lumen to build’ s stability, capacity and performance to better meet the growing demand for AI.

Lumen stock is up 222.37% since the announcement, sparking renewed interest in the fiber network specialist and the potential opportunity it represents, with the stock giving back nearly 90% of its value. given while its all-time high is US$49.45. 2007, last trading at just US$5.38 per share.

From a balance sheet perspective, Lumen looks unattractive, as evidenced by its five consecutive years of revenue declines from US$21.4 billion in 2019 to US$14.45 billion in 2023, primarily due to COVID-19. Change and distribution from Canada, United States and Europe, Middle East and Africa region.

he said, The company sees this trend changing.With up to US$5 billion in AI deals recently secured and another US$7 billion under discussion, including its project with Microsoft, President and Chief Executive Officer Kate Johnson feels that Lumen is “the most One of the major expansions” is on the leading edge. of the Internet until now.”

According to Statista, Global AI Market will more than quadruple from USD 184 billion in 2024 to USD 826.73 billion in 2030, giving Lumen a strong tailwind to leverage Microsoft’s capabilities towards greater market share. is

If you’re interested in holding a position in Lumen Technologies for the long term, look for declining operating expenses and an upward trend in gross profit and free cash flow before moving beyond the nominal allocation.

If you’re willing to play Lumen with a short-term trade, look for Wednesday’s bounceback. Q2 2024 earnings reportThat sent the stock down more than 18 percent in Thursday’s trading.

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(Top photo of Lumen’s Chief Executive Officer, Kate Johnson: Lumen Technologies)