Lumen Technologies Partners with Palantir in $200 Million Deal, Stock Surges 46.3%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 18 2026
0mins
Source: NASDAQ.COM
- Significant Stock Surge: Lumen's stock rose 46.3% in 2025, outperforming the S&P 500's 16.4% gain, reflecting strong performance in the AI hardware market and heightened investor confidence.
- New Partnership Catalyst: The approximately $200 million network-as-a-service (NaaS) deal with Palantir significantly boosted market sentiment regarding Lumen's position in AI, leading to a substantial stock increase in October.
- Strong Market Demand: Early 2026 saw Lumen's share price rise about 8.8%, while the S&P 500 and Nasdaq gained 1.4% and 1.2%, respectively, indicating robust demand for AI infrastructure hardware, further enhancing the company's valuation.
- Optimistic Industry Outlook: Taiwan Semiconductor's better-than-expected Q4 results highlighted strong growth in AI semiconductors, providing a positive market signal for Lumen's Private Connectivity Fabric (PCF) technology and bolstering investor confidence in the company.
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Analyst Views on LUMN
Wall Street analysts forecast LUMN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LUMN is 8.33 USD with a low forecast of 7.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
0 Buy
5 Hold
1 Sell
Hold
Current: 9.160
Low
7.00
Averages
8.33
High
11.00
Current: 9.160
Low
7.00
Averages
8.33
High
11.00
About LUMN
Lumen Technologies, Inc. is a networking company, which connects people, data, and applications quickly and securely. The Company is engaged in providing an array of integrated products and services to its domestic and global business customers and its domestic mass market customers. It operates through two segments: Business segment and Mass Markets segment. The Company conducts its operations under four brands: Lumen, which is its flagship brand for serving the enterprise and wholesale markets, including its Private Connectivity Fabric (PCF) network architecture, Lumen Digital products, and its priority services including Edge, Network-as-a-Service and cybersecurity; Quantum Fiber, which provides fiber-based broadband services to residential and small business customers; CenturyLink, which is engaged in providing primarily mass-marketed copper-based communications services, and Black Lotus Labs, which is its cyberthreat research and intelligence arm.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AT&T Acquires Lumen's Fiber Business for $5.75 Billion
- Acquisition Scale: AT&T agreed to acquire Lumen's fiber business for $5.75 billion last year, which is expected to add 4 million passed locations and 1 million subscribers, significantly expanding its fiber network and enhancing market competitiveness.
- Integration Cost Impact: AT&T anticipates a $0.05 reduction in adjusted earnings per share in 2026 due to integration costs and additional interest expenses, indicating short-term financial pressure but substantial long-term revenue potential.
- Customer Penetration Opportunity: With Lumen's customer penetration rate at 25%, AT&T has the potential to add approximately 600,000 new customers by improving penetration, further solidifying its market position.
- Cash Flow Growth Outlook: Despite high initial costs, AT&T expects free cash flow to reach at least $21 billion by 2028, demonstrating the strategic value of the Lumen acquisition for long-term growth.
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Surge in Options Trading Volume for Lumen and Coupang
- Lumen Options Volume: Lumen Technologies Inc has seen options trading volume of 65,823 contracts today, equating to approximately 6.6 million shares, which represents 60.8% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- High-Frequency Contracts: Within LUMN, the $10 strike call option expiring on January 30, 2026, has traded 22,475 contracts, representing about 2.2 million shares, suggesting an increased bullish sentiment among investors regarding the stock's potential upside.
- Coupang Options Activity: Coupang Inc has recorded an options trading volume of 127,078 contracts today, translating to approximately 12.7 million shares, which is 60.3% of its average daily trading volume over the past month, reflecting active trading interest in its stock.
- Key Contract Insights: For CPNG, the $18 strike put option expiring on May 15, 2026, has seen a trading volume of 20,400 contracts, representing around 2.0 million shares, indicating investor concerns about potential price declines in the future.
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