Why Lumen Technologies Stock Plummeted Today

Lumen (NYSE: LUMN) stock got hit hard in Tuesday's trading. Its share price was down 10% just before market close on news that the company could wind up selling one of its units to AT. The stock had been down as much as 18.7% earlier in the day.

Bloomberg published a report today suggesting that AT could wind up buying Lumen's consumer-facing fiber internet business. Investors clearly aren't happy about the news. The report used unnamed sources.

According to today's report, AT could buy Lumen's consumer fiber business for roughly $5.5 billion. While a sale could generate a significant amount of cash for the debt-laden Lumen, there are good reasons investors investors are having such a negative reaction to the news.

Continue reading

Source Fool.com