What Happened?

Shares of telecommunications infrastructure company Lumen Technologies (NYSE: LUMN) fell 6% in the afternoon session after Jim Cramer of CNBC's 'Mad Money' advised investors to be careful with the stock. 

On his show, Cramer stated he believed the stock had “run too much,” suggesting its recent gains might have been overextended. The negative commentary from the influential media personality appeared to overshadow other recent developments, such as a partnership with Meter. The two companies had announced an end-to-end networking solution combining Lumen's network with Meter's local area network platform.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lumen? Access our full analysis report here.

What Is The Market Telling Us

Lumen’s shares are extremely volatile and have had 57 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 2 days ago when the stock dropped 4.2% after a broad sell-off in the technology sector and continued concerns about the company's financial health. 

The stock's decline coincided with weakness across the tech industry, as investors dumped technology stocks amid fears of an "AI bubble deflating but not popping." This followed a strong run for the sector, prompting some profit-taking. Compounding the issue for Lumen were its own internal challenges. The company faced hurdles with declining revenue and free cash flow. This financial picture contributed to a dim view from analysts, who held a consensus median price target below the stock's recent price, suggesting no near-term upside potential.

Lumen is up 35.2% since the beginning of the year, but at $7.59 per share, it is still trading 35.9% below its 52-week high of $11.83 from November 2025. Investors who bought $1,000 worth of Lumen’s shares 5 years ago would now be looking at an investment worth $740.

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