Lumen Technologies and its subsidiary, Level 3, have announced exchange offers for certain of their outstanding unsecured senior notes. The offers involve exchanging these notes for newly-issued secured notes with higher interest rates. This move aims to restructure the companies’ debt obligations and improve their financial positions.
Lumen Technologies (LUMN) shares are trading higher on Wednesday, despite a bearish report from Kerrisdale Capital. The firm expressed doubts about Lumen’s AI-fueled turnaround and questioned the company’s recent contracts. However, Lumen has defended its strategy, claiming that AI’s growth will drive demand for its network. Analysts remain cautious, with no positive ratings and an average 12-month price target suggesting potential downside.
Lumen Technologies (LUMN) shares took a significant dive on Tuesday after Kerrisdale Capital, a well-known short seller, released a bearish report questioning the company’s AI-driven turnaround strategy. The report, titled “AI-N’t Gonna Fix This Mess,” criticizes Lumen’s recent contracts as attempts to raise capital amid declining revenue and liquidity concerns. Analysts are divided on Lumen’s future, with no positive ratings and an average price target suggesting further downside.
A recent research report from Lumen Technologies has shed light on a concealed cyberattack that crippled over 600,000 personal routers last year. The attack, carried out between October 25 and 27, 2023, utilized a malicious firmware update that erased routers’ operational code, rendering them inoperable. This unprecedented attack has been deemed one of the most severe ever against America’s telecommunications sector.
