Lumen (LUMN) Sheds 10.9% After All-Time High

We recently published 10 Stocks Lead Wall Street Downward Spiral. Lumen Technologies Inc. (NYSE:LUMN) is one of the worst-performing stocks on Tuesday.

Lumen Technologies dropped its share prices by 10.90 percent to close at $10.54 apiece as investors resorted to profit-taking to take advantage of yesterday’s all-time high.

Additionally, Lumen Technologies Inc. (NYSE:LUMN) mirrored a broader market downturn, as investors turned increasingly concerned about the valuations of leading artificial intelligence stocks.

Last week, Lumen Technologies Inc. (NYSE:LUMN) announced that it widened its net loss in the third quarter of the year by 319 percent to $621 million from $148 million in the same period last year on the back of higher expenses.

Meanwhile, adjusted EBITDA fell by 32 percent to $571 million from $843 million, while total revenues dipped by 4.16 percent to $3.087 billion from $3.221 billion year-on-year.

Despite the figures, Lumen Technologies Inc. (NYSE:LUMN) reaffirmed its growth outlook for full-year 2025, with total adjusted EBITDA expected to hit $3.2 billion to $3.4 billion.

Capital expenditures were on track to hit $4.1 billion to $4.3 billion, as the company ramps up developments aimed at supporting the artificial intelligence industry.

While we acknowledge the potential of LUMN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.