Lumen Technologies (LUMN) Bounces Back from 3-Day Drop. Here's Why

We recently published 10 Stocks on Fire Ahead of 2026. Lumen Technologies Inc. (NYSE:LUMN) is one of the best performers on Tuesday.

Lumen Technologies rebounded by 3.44 percent on Tuesday to close at $7.81 apiece as investors resorted to bargain-hunting following a three-day drop.

Month-to-date,  the stock was down by 3.7 percent.

In recent news, Lumen Technologies Inc. (NYSE:LUMN) announced the early redemption of its entire note series due 2029, 2030, and 2031, removing its earlier cap to redeem only $1.5 billion worth of notes.

While the offer stands to benefit holders of the said notes, the initiative sparked caution among shareholders over the possibility of Lumen Technologies, Inc. (NYSE:LUMN) burning more cash and tapping new debt facilities to implement such an initiative.

The announcement followed Lumen Technologies, Inc.’s (NYSE:LUMN) plan earlier this month to raise $1.25 billion in fresh funds from the issuance of senior notes due 2036.

The new notes were higher by $500 million than the initial plan and carry a yield rate of 8.5 percent, proceeds of which will be used to fund the buyback of the 2029, 2030, and 2031 notes.

The 2036 notes were priced to investors at 100 percent of their aggregate principal amount and will mature on Jan. 15, 2036. Upon issuance, the notes will be fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by Level 3 Parent, LLC, a wholly owned subsidiary of the company.

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.

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