Why Lumen Technologies Stock Popped Today
Key Points
The telecom announced a dramatic expansion of its high-speed network-as-a-serivce (NaaS) offering.
It says this is now available in more than 10 million business locations.
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A significant expansion of a desirable service was the motor driving Lumen Technologies (NYSE: LUMN) stock a good deal higher on the first trading day of the week. That optimism bolstered the telecom's equity by nearly 16%, obliterating the 1.2% increase of the bellwether S&P 500 index.
Time for some expansion
That morning, Lumen announced that its Internet On-Demand service had been expanded to cover more than 10 million new business locations. These include office buildings and data centers, the company added.
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With this initiative, Lumen said, its network-as-a-service (NaaS) platform is now accessible beyond the company's network footprint. This is being effected through partnerships with peer network providers controlling so-called "last mile" access.
In the press release trumpeting the news, Lumen quoted its CTO Dave Ward as saying that "For too long, businesses have been constrained by geography, but we're eliminating that barrier."
He added that "we're meeting businesses where they are and delivering one self-service solution that gives them the speed and flexibility they need to compete."
Connecting for profit
At a stroke, this gives Lumen far more reach than it had previously and therefore easy potential to scale up the Internet On-Demand business. While the company didn't provide any estimates as to how this might impact its fundamentals like revenue, it clearly has high potential to boost its financial numbers.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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