AI and Fiber Optics Expectations Dampen: Market Cap Drops by 500 Billion in a Day
By ATTN Desk · Editorial oversight: Sean Han
Lumen Technologies Inc. (NYSE: LUMN) closed at $8.01 on the New York Stock Exchange on the 21st, down 5.21%. Trading volume was about 5.64 million shares, and its market capitalization fell to roughly $8.2 billion—about ₩11 trillion—erasing around $400 million (₩500 billion) in a single day.
After surging over the past two years on expectations around AI networks and fiber optics, the stock has come under scrutiny for overheating, with some research firms valuing it at around $7. The company has sold its consumer FTTH business to AT&T, securing about $4.2 billion to repay roughly $4.8 billion in senior debt and reduce interest expenses.
Formerly known as CenturyLink, Lumen Technologies operates long-haul fiber and enterprise networks across the U.S. and is now restructuring around enterprise cloud-edge and AI-traffic services. Since joining in 2022, CEO Kate Johnson has been spearheading a turnaround strategy focused on debt reduction, cost cutting, and AI- and network-service offerings.