Despite Lumen Technologies (LUMN.US) announcing this morning a partnership with Meta Platforms (META.US) to expand network capacity, Raymond James believes this news will not have a significant impact on Lumen's stock price. Analyst Frank Louthan of the firm pointed out in the report that as the market may have already anticipated this collaboration, short-term price fluctuations are unlikely. He rates Lumen as 'in line with the large cap' and believes that this partnership does not bring more incremental information than previously known. Louthan speculates that this announcement may be a delayed announcement by Meta regarding its $5 billion pipeline network deal announced in August.

Nevertheless, Lumen Technologies' stock price rose by 5.5% in early trading on Monday. This collaboration will provide Meta with enhanced flexibility and secure on-demand bandwidth to support its complex computing needs and help serve billions of people daily.

Lumen's transformation has met this demand, as Meta utilizes more AI services on its platform, Lumen is assisting Meta in providing a seamless, easy, and flexible network to meet its growing needs. Lumen's private connection structure provides long-term network capacity for Meta's AI.

Meta's Director of Network Investments, Alex-Handrah Aimé, states that Meta's AI tools are performing increasingly complex tasks, including supporting conversations in multiple languages and real-time translation of text into images, all while helping people interact with the world around them in new, immersive ways.

It is understood that Lumen will report its performance for the third quarter of 2024 on November 5, 2024.