Should I buy Lumen Technologies stock in 2025? An Expert UAE Perspective

What is Lumen Technologies?

How much is the Lumen Technologies stock?

The price of Lumen Technologies stock is falling this week. Currently trading at $3.90, the share has dropped -1.02% in the past 24 hours and is down -26.55% over the week. Lumen’s market capitalization stands at $4.04 billion, with an average 3-month trading volume of 12.96 million shares. The P/E ratio is not available as the company is reporting losses, the dividend yield is 0.00%, and the stock beta is 1.22. Investors in the UAE should note the high volatility, which presents both risks and opportunities for dynamic market participants.

Our full analysis on the Lumen Technologies stock

Having examined Lumen Technologies' most recent financial statements alongside its three-year stock performance and sector data, and after consolidating quantitative metrics, technical signals, and competitive benchmarks through our proprietary analytic models, a comprehensive and nuanced picture of the stock emerges. Against the backdrop of its ongoing transformation, several indicators suggest that the company may be entering a renewed phase of resilience and opportunity. So, why might Lumen Technologies once again become a strategic entry point into the US telecommunications and AI infrastructure sector in 2025?

Recent Performance and Market Context

Lumen Technologies (NYSE: LUMN) has displayed remarkable volatility and resilience in the past year. As of May 30, 2025, the stock trades at $3.90, reflecting a substantial 1-year appreciation of +202%, an impressive rebound from its 52-week low of $0.97. Notably, this price action has occurred despite a -26.5% performance Year-to-Date, signaling renewed investor confidence following a period of decline.

A major factor that revitalized the stock was the May 2025 announcement of the $5.75 billion sale of Lumen’s consumer fiber-to-the-home business to AT&T. This transaction, scheduled to close in H1 2026, instantly repositioned Lumen as a focused B2B and AI-driven network infrastructure play. The news catalyzed a 13% spike in after-hours trading, which reverberated positively throughout the broader telecommunications segment.

Macroeconomically, the global AI infrastructure buildout has become a mainstay of the 2025 tech investment landscape. As hyperscalers, data-centric enterprises, and cloud-native service providers vie for ever-increasing bandwidth and ultra-low latency, Lumen stands to benefit from elevated capital expenditure flows and a regulatory environment increasingly supportive of network modernizations—an especially relevant context for GCC-based investors seeking dollar-denominated exposure to the US technology value chain.

Technical Analysis

• Relative Strength Index (RSI): The RSI has recovered from deeply oversold conditions during Q4 2024 to hover in the 45-55 range, suggesting an ongoing consolidation phase with potential for an upside breakout should buying pressure accelerate.
• Moving Averages: Both the 50-day and 100-day simple moving averages (SMAs) are trending upward, with the current price having established support above the 50-day SMA at $3.70. This crossover is often indicative of a reversal in medium-term trend, and historically, such formations have preceded sustained uptrends in recovery stocks.
• MACD: The Moving Average Convergence Divergence shows a positive divergence since late March: rising histogram bars and a narrowing signal line spread, both of which may presage renewed momentum ahead of major 2025 catalysts.
• Support and Resistance: Key technical support zones are at $3.75 and $3.30. The next resistance to monitor lies at the $4.50 level, and a clear breakout could pave the way toward the computed upside target of $5.07 (+30% from current prices).

Short- and medium-term momentum is thus structurally neutral-to-positive. Volatility remains above historical averages (beta at 1.22), underscoring rapid re-rating potential for those monitoring catalysts and entry points with discipline.

Fundamental Analysis

• Revenue and Profitability: 2024 revenues were $13.1 billion (-10% year-on-year), yet Q4 marked a pronounced improvement in bottom-line profitability, shifting from a $1.995 billion loss in Q4 2023 to a positive net income of $85 million in Q4 2024. The one-off goodwill impairments are now in the rearview mirror, with quarterly diluted EPS returning to positive territory ($0.09/share in Q4 2024).
• EBITDA and Cash Flow: Adjusted annual EBITDA stands at $3.939 billion (15% decline, largely forecasted and related to business repositioning), but guidance for 2025 is promising, targeting $3.2–$3.4 billion and free cash flow of $700–$900 million. This transition is set to radically improve leverage ratios post-asset sale.
• Valuation: While the stock currently trades without a price-to-earnings ratio (LTM EPS negative), the market capitalization of $4.04 billion and sales multiple (P/S) at approximately 0.31x look attractive vis-à-vis sector peers, especially given Lumen’s pivot to higher-margin enterprise and AI segments.
• Structural Strengths:
• Strategic Focus: Emphasis on AI-age infrastructure positions Lumen uniquely as a backbone provider for next-generation networks.
• Brand and Reach: With a global IP network footprint and enterprise-grade capabilities, Lumen retains an enduring competitive edge in an industry where scale is critical.
• Management: CEO Kate Johnson’s leadership since late 2022 has ushered in a disciplined culture, evidenced by rigorous asset pruning and transformation-focused execution.

Volume and Liquidity

A key signal for institutional and regional investors is market depth. Lumen features robust liquidity, with recent days showing over 6.8 million shares traded—roughly 53% of the 65-day moving average and supported further by a large free float (940.7 million shares). The bid-ask spread remains tight, underlining strong marketability and reduced transaction friction, both vital for trading positions and larger accumulations.

This consistent volume suggests that investors, including major funds, maintain strong interest in the name—a typical precursor to potential rerating events, especially as positive news flow continues into H2 2025.

Catalysts and Positive Outlook

• Completion of the AT&T Transaction: The expected $5.75 billion cash inflow will sharply reduce long-term debt (currently $17.5 billion) and enable focused reinvestment in premium segments.
• Capex for Growth: Elevated 2025-2026 capital expenditures ($4.1–$4.3 billion) are earmarked for AI-related backbone expansion, cloud connectivity, and optical networks—each a hotbed of structural demand over the decade.
• AI Network Leadership: With hyperscalers and enterprise clients requiring scalable, secure, and ultra-low-latency infrastructure, Lumen is uniquely positioned for a re-rating as a digital infrastructure enabler.
• Positive ESG Momentum: Lumen’s reduced physical footprint and energy-efficiency programs increasingly meet global ESG standards—an emerging investment theme for sovereign wealth funds and responsible investors in the UAE and beyond.
• Sector Tailwinds: The broader tech infrastructure sector, driven by digital transformation and 5G/AI convergence, remains one of the most favored macro themes globally for 2025.

Investment Strategies

• Short-Term: The stock’s current consolidation above key moving averages, post-asset-sale optimism, and exuberance around AI infrastructure could catalyze swift rallies toward resistance levels ($4.50 and beyond), particularly on news flow about deleveraging or partnership announcements. Traders monitoring technical setups may find this an opportune zone for initial accumulation, with stop-losses below well-defined supports.
• Medium-Term (6–24 months): The closure of the AT&T deal, execution on the AI backbone strategy, and realization of cost and margin improvements provide strong levers for continued operational momentum. The risk/reward profile appears skewed toward the upside, especially with computed targets ($5.07) in line with the company’s transformation timeline.
• Long-Term: For those implementing patient capital, Lumen’s repositioning to a data-centric, enterprise, and AI-led paradigm unlocks structural upside, tied not only to cyclical recovery but also secular growth in global bandwidth and cloud connectivity demands. As the business completes its transition by 2026, the prospect of dividend reinstatement and even international expansion could further catalyze the stock’s appeal.

Ideal entry points could materialize on technical pullbacks toward major supports or as catalysts near—such as post-quarterly earnings, debt reduction updates, or AI infrastructure contract wins.

Is it the Right Time to Buy Lumen Technologies?

Summing up, Lumen Technologies is traversing one of the most compelling recovery arcs in the US tech and communications sector. With its audacious portfolio restructuring, proven ability to return to profit, and strategic reallocation toward the AI-powered digital infrastructure space, the company appears poised to reward those with foresight and risk tolerance. Key attributes underpinning a bullish case include:

• Clear catalysts: $5.75 billion in imminent liquidity, receding legacy headwinds, and a resurgent focus on high-growth verticals.
• Technical confirmation: Neutral-to-positive momentum and strong support levels provide a buffer against excessive downside volatility.
• Attractive valuation: Discounts to peer averages suggest ample headroom for re-rating upon successful transformation.
• Active market participation: Robust liquidity and narrow spreads indicate strong underpinning investor confidence.

All considered, Lumen Technologies seems to represent an excellent opportunity at the current juncture, supported by both improving fundamentals and a suite of identifiable upward drivers. For investors in the UAE seeking diversification into US-listed tech recovery plays with clear AI and digital transformation exposure, LUMN merits renewed interest and close monitoring as the next wave of catalysts unfolds.

For those focused on upside potential, Lumen Technologies stands out in 2025 as a stock where transformation and opportunity are intimately linked—a combination that the market rarely overlooks for long.

How to buy Lumen Technologies stock in AE?

Buying Lumen Technologies stock online is both straightforward and secure when using a regulated broker in the United Arab Emirates (UAE). Investors have two main methods to access the shares: traditional spot buying, where you purchase and own the shares outright, and CFD trading, which lets you speculate on price movements with leverage. Each approach offers unique benefits and risks. To help you make the best decision for your investment goals, we provide a detailed broker comparison further down this page.

Spot Buying

A spot or cash purchase means buying real Lumen Technologies shares and becoming a direct shareholder. This is the simplest and most transparent approach: you own the shares in your name and can hold them as long as you wish. Regulated brokers in the UAE typically charge a fixed commission per trade, often around AED 20–30 (approximately $5–$8).

Example

With Lumen Technologies trading at $3.90 USD per share, an investment of $1,000 USD lets you acquire about 255 shares (after factoring a typical brokerage fee of around $5).

• ✔️ Gain scenario: If the share price rises by 10%, your holdings will be worth $1,100.
• Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading enables you to speculate on Lumen Technologies’ share price without owning the shares directly. CFDs are leveraged products offered by regulated brokers, giving exposure to price movements, both up and down. Fees on CFDs include the spread (the difference between buy and sell price) and overnight financing charges if you hold your position overnight.

Example

With a $1,000 USD deposit and 5x leverage, you gain exposure to $5,000 USD worth of Lumen Technologies stock.

• ✔️ Gain scenario: If the share price goes up by 8%, the total profit on your position is 8% x 5 = 40%. That’s a $400 gain on a $1,000 outlay (before fees).

Remember: leverage increases both potential gains and risks, so it’s vital to use this approach with caution.

Final Advice

Before investing in Lumen Technologies or any other stock, it is essential to carefully compare brokers’ fees, trading platforms, and regulatory protections. The optimal method—cash purchase or CFD trading—depends on your investment objectives, time horizon, and appetite for risk. To assist with your decision, take advantage of our comprehensive broker comparison tool available further down this page. Invest wisely and always choose a regulated partner for security and peace of mind.

Our 7 tips for buying Lumen Technologies stock

The latest news about Lumen Technologies

Lumen finalizes major $5.75 billion asset sale to AT&T, boosting financial strength and strategic focus. On May 28, 2025, Lumen Technologies officially announced the sale of its U.S. fiber-to-the-home business to AT&T for $5.75 billion in cash, a transaction set to close in H1 2026. This move was specifically designed to streamline Lumen’s portfolio and enable a sharper focus on enterprise network services and AI infrastructure. The market reacted very positively: Lumen’s stock price jumped over 13% in post-market trading following the transaction’s announcement. The capital inflow is expected to significantly accelerate Lumen’s debt reduction and future investment capabilities, a constructive signal for institutional investors in the UAE looking for turnaround plays with strengthening financials.

Q4 2024 results highlight return to net profitability, despite declining annual revenues. Lumen’s Q4 2024 financials show a turnaround in profitability: net profit reached $85 million versus a $1.99 billion loss in Q4 2023, with diluted EPS at $0.09 against a $2.03 per-share loss the previous year. Although annual revenue for 2024 dropped by 10% to $13.1 billion and the adjusted EBITDA fell 15% to $3.94 billion, the company’s operational improvements and significant goodwill write-downs in 2023 allow 2024 to stand out as a recovery year. This trajectory is especially relevant for UAE institutional portfolios prioritizing evidence of operational discipline and renewed profit potential in the context of global telecom investments.

Strategic realignment intensifies focus on AI infrastructure and high-margin enterprise services. Following the AT&T deal, Lumen reiterated its strategic pivot to enterprise business—particularly building advanced backbone networks and digital infrastructure supporting the AI economy. The company’s ongoing shift toward "cloudified" telecom services and robust data connectivity aligns with global technology trends and is expected to serve growing Middle East demand for AI-powered enterprise solutions. Lumen’s visibility in the AI infrastructure segment is now central to its investment thesis and may attract interest from UAE sovereign funds and private investors active in digital transformation themes.

Market sentiment turns cautiously optimistic as debt reduction and growth investments gain clarity. The injection of $5.75 billion from the AT&T transaction is pegged to reduce Lumen’s substantial long-term debt, currently at $17.5 billion, and permit new growth-oriented investments. Forecasts for 2025 indicate an adjusted EBITDA of $3.2–$3.4 billion and free cash flow of $700–$900 million, supporting a calculated medium-term price target of $5.07 a share (roughly 30% upside from current levels). UAE-based analysts note that Lumen’s improving capital structure, along with its upgraded liquidity profile and attractive risk/reward balance, are constructive factors for regional asset allocators reassessing global telecom holdings.

No direct UAE exposure, but Lumen’s global enterprise focus and AI infrastructure offer strategic relevance for local investors. Lumen does not have a direct operating presence or joint venture in the UAE, nor is its stock eligible for local tax-advantaged accounts. However, its repositioning as an AI-centric enterprise services provider resonates with digital transformation accelerators currently prioritized by UAE national strategies and major regional investors. As public and private sectors in the Emirates continue to emphasize smart infrastructure and data economy growth, Lumen’s evolving business model offers indirect thematic exposure to these major trends, reinforcing its interest among sophisticated Middle East portfolio managers.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.