DENVER - Lumen Technologies (NYSE: LUMN), a global technology company, has announced the addition of Chris Capossela to its board of directors, effective from today. Capossela, known for his extensive experience in the tech industry, has spent over three decades at Microsoft (NASDAQ:MSFT), most recently as the executive vice president and chief marketing officer.
During his tenure at Microsoft, Capossela led a comprehensive range of marketing activities, including product marketing and business planning, as well as digital and retail partner sales for the company's full product lineup. His appointment to the Lumen board is expected to enhance the company's strategic positioning as a trusted network for artificial intelligence (AI) applications in the enterprise sector.
Lumen's president and CEO, Kate Johnson, emphasized the value of Capossela's deep customer insight and marketing expertise in shaping the company's brand and market approach. Capossela himself noted Lumen's emerging prominence in the industry, especially among large businesses considering AI's role in their strategies and the infrastructure required to support it.
Capossela, a Harvard University economics graduate, also contributes his expertise to various corporate and non-profit boards. His arrival increases Lumen's board to a total of 12 members.
Lumen Technologies focuses on unlocking digital potential by connecting people, data, and applications swiftly, securely, and efficiently. The company positions itself as the network of choice for AI, leveraging its extensive network to support businesses in realizing AI's capabilities.
This board appointment is part of Lumen's ongoing efforts to strengthen its leadership team and strategic vision. The company's complete board of directors can be found on its website.
This news is based on a press release statement from Lumen Technologies.
In other recent news, Lumen Technologies continues to make significant strides. The company recently announced a partnership with Meta Platforms (NASDAQ:META) to enhance Meta's network capacity, a move expected to bolster the development of advanced AI applications. The collaboration is part of a previously disclosed $5 billion network deal involving major tech firms, including Microsoft and Amazon (NASDAQ:AMZN).
Analysts from Raymond James maintained a Market Perform rating on Lumen, suggesting that the market had anticipated the partnership's specifics. BofA Securities also retained its underperform rating on Lumen ahead of its third-quarter earnings, citing concerns about the company's $5 billion fiber construction project and potential divestiture of the Mass Market segment.
Lumen Technologies, along with AT&T and Verizon (NYSE:VZ), is currently under investigation by U.S. lawmakers following allegations of Chinese hackers infiltrating their networks. The hackers, identified as "Salt Typhoon," reportedly compromised systems used for court-authorized wiretapping, potentially accessing critical infrastructure for several months.
Wells Fargo (NYSE:WFC) has expressed concerns about Lumen's substantial debt, which exceeds $19 billion in long-term maturities, leading to a downgrade of the company's stock from Equal Weight to Underweight. These developments highlight a transformative period for Lumen Technologies as it navigates its strategic focus on AI and private connectivity fabric amidst financial challenges.
InvestingPro Insights
As Lumen Technologies (NYSE: LUMN) welcomes Chris Capossela to its board of directors, investors might find additional context from recent financial data and expert insights valuable. According to InvestingPro, Lumen's market capitalization stands at $6.52 billion, reflecting its significant presence in the technology sector.
The company's revenue for the last twelve months as of Q2 2023 was $13.72 billion, with a revenue growth rate of -12.01% over the same period. This decline aligns with an InvestingPro Tip noting that analysts anticipate a sales decline in the current year. Despite this, Lumen has shown a strong return over the last three months, with a price total return of 230.41%.
Another InvestingPro Tip highlights that the stock generally trades with high price volatility, which could be of interest to investors considering the company's strategic moves, such as the recent board appointment. This volatility is evident in the impressive 425.41% price total return over the last six months.
It's worth noting that Lumen currently does not pay a dividend to shareholders, which may be a factor for income-focused investors. However, the company's focus on positioning itself as the network of choice for AI applications could potentially drive future growth and shareholder value.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Lumen Technologies, providing a deeper understanding of the company's financial health and market position.
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