According to Sina Finance, Lumen Technologies (LUMN.US) fell more than 10% on Tuesday, before that, research institution Hedgeye expressed a bearish view on the stock, believing that the stock has a 40% downward risk. Hedgeye analyst Andrew Freedman wrote in a report on Tuesday:"Lumen's financial situation remains unstable, with a high leverage ratio (long-term net debt/EBITDA is 4.3 times), continuously declining EBITDA margin, and limited free cash flow generation (i.e. unable to earn capital costs). The company's recent debt restructuring has deferred the near-term maturity date to 2029."

Freedman added that the new $5 billion "private interconnect structure" transaction helps fill the $1 billion liquidity gap until 2027, although it does not address Lumen's "fundamental problems".

A week ago, Kerrisdale Capital released a short report on Lumen, causing Lumen's stock price to fall 15% on August 27th.

Lumen stated in a statement last Tuesday: "Lumen is a trusted network for artificial intelligence, and the recent announcement reflects not only our confidence but also the confidence of others who are striving to obtain bandwidth. Artificial intelligence requires data centers - data centers require connectivity - and connectivity requires fiber optic cables. As artificial intelligence develops, the demand for Lumen's network is also growing."