Kerrisdale Capital short Lumen Technologies, says AI will not ‘fix this mess’

In a recently published report titled “AI-N’t Gonna Fix This Mess,” Kerrisdale Capital said it is short shares of Lumen Technologies, “a $26B telecommunications company trying to spin how AI will fuel the dramatic turnaround of a secularly declining business saddled with $19B of debt.” “In recent weeks, a mixture of buzzy headlines, misplaced retail investor enthusiasm, and short covering has sent a previously moribund stock soaring 400%… We understand the allure of trying to find the next great AI play, but at these levels, an investment in Lumen lacks more than just artificial intelligence,” the report reads. Kerrisdale says “don’t buy the AI hype,” the $5B in custom networks is “only slightly over $1 per share of value,” and the $7B in AI sales opportunities is a “pipedream.” Shares of Lumen are down over 6% in pre-market trading.