What Happened?
Shares of telecommunications infrastructure company Lumen Technologies (NYSE: LUMN) jumped 4.3% in the morning session after the company announced it is teaming up with Pac-12 Enterprises to power a new era in sports broadcasting.
The partnership will utilize Lumen's Network-as-a-Service (NaaS) technology to create a pioneering remote production model for live sports. This new broadcasting approach will debut with the Washington State vs. Idaho football game on August 30 on The CW. According to Pac-12 Enterprises, the technology is a "gamechanger," allowing the organization to produce live events remotely and scale bandwidth on demand within minutes. This capability provides the flexibility to adjust capacity up to 10 gigabits, which is critical for seamlessly delivering multiple live events to millions of fans.
Is now the time to buy Lumen? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Lumen’s shares are extremely volatile and have had 48 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 6.6% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Lumen is down 10.3% since the beginning of the year, and at $5.04 per share, it is trading 50.2% below its 52-week high of $10.12 from November 2024. Investors who bought $1,000 worth of Lumen’s shares 5 years ago would now be looking at an investment worth $443.73.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
