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.
