Lumen Technologies: A Calculated Risk?

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February 2nd, 2026. Another day, another portfolio tweak. CapWealth Advisors, LLC, apparently feeling bullish (or perhaps just needing somewhere to put $9.92 million), decided to load up on Lumen Technologies (LUMN). 704,970 shares, to be precise. Honestly, it’s always a bit unsettling when someone makes a large purchase. Is it a sign of confidence? Or a desperate attempt to prop up a sinking ship? One never truly knows.

Lumen, for those unfamiliar, is one of those companies that provides the invisible infrastructure of modern life. Communications, fiber optics, the things that keep cat videos streaming. They serve businesses, governments, and a rather alarming number of broadband subscribers. It’s a big operation. A very big operation. Which, naturally, brings with it a certain level of…complexity.

What Happened (and Why I’m Overthinking It)

So, CapWealth bought more LUMN. It increased their position by a cool $14.54 million, factoring in both the share purchase and, let’s be honest, a bit of market volatility. It now represents 3.3% of their 13F reportable assets. Which, I suppose, is significant. It’s enough to make one wonder if they’ve seen something I haven’t. Or if they simply had a spare $9.92 million lying around. One can only dream.

Current top holdings, for the record (and my own comparative anxiety):

  • NASDAQ: PLTR: $51.62 million (3.5% of AUM)
  • NASDAQ: LUMN: $48.17 million (3.3% of AUM)
  • NYSE: WMB: $46.63 million (3.2% of AUM)
  • NASDAQ: MSFT: $42.92 million (2.9% of AUM)
  • NYSE: GLW: $41.68 million (2.8% of AUM)

And the stock itself? Up 76.4% over the past year, with a one-year alpha of 62.11 percentage points versus the S&P 500. Sounds impressive, doesn’t it? Until you remember that past performance is not, emphatically not, indicative of future results. It’s a cruel lesson, repeatedly learned.

The Numbers (Because We Have to)

Here’s a quick snapshot, for those who like the cold, hard facts (I prefer distraction, personally):

Metric Value
Revenue (TTM) $12.69 billion
Net Income (TTM) ($1.65 billion)
Market Capitalization $9.25 billion
Price (as of market close 2/2/26) $8.82

They offer all the usual tech services – cloud, IT solutions, fiber infrastructure, broadband. They serve businesses, governments, and a lot of people who just want to watch Netflix. It’s a diversified portfolio, which is… reassuring. I think.

What This Means (Or, My Existential Portfolio Crisis)

Being an internet service provider is supposed to be a reliable business. Predictable cash flows, consistent profits. The problem is, Lumen hasn’t exactly been setting the world on fire lately. They lost $1.65 billion over the trailing twelve months. Which is, let’s face it, a bit alarming. Especially considering they lost over $1 billion the previous year. One begins to question the very nature of reality.

On the brighter side (always look for the brighter side!), they recently sold their Mass Markets fiber-to-the-home business to AT&T for $5.75 million in cash. Apparently, they’re doubling down on enterprise and public sector clients. Which makes sense, in a coldly logical, business-school sort of way. They’re pivoting towards the things that require more…complicated solutions. And, presumably, higher margins.

Units of Cryptocurrency Lost: 7. Hours Spent Watching Charts: 11. Number of Panicked Texts to Friends: 18. Will become disciplined long-term investor: Unlikely.

So, is this a calculated risk? A bold move? Or simply a desperate attempt to salvage a struggling company? Honestly, I have no idea. And that, my friends, is what makes the market so endlessly fascinating. And terrifying.

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2026-02-02 20:03