Lumen Technologies and Meta are partnering to significantly increase Meta's network capacity and help drive its bold AI ambitions. The expanded network will provide dedicated interconnection for Meta's industry-leading infrastructure, strengthening and increasing the company's ability to lead in AI development. This increase in capability is another differentiator that will fuel Meta's vision to advance AI for a more connected world.

The announcement from Lumen Technologies this morning that it is partnering with Meta Platforms (NASDAQ:META) to expand the latter's network capacity should not move Lumen's stock, Raymond James said.

"We do not believe this announcement warrants any near-term moves in the shares as it is likely already reflected in the outlook," analyst Frank Louthan wrote in a note to clients. Louthan, who has a Market Perform rating on Lumen, added it is "unclear" at this time if there is anything incremental from what was previously known.

"We believe this is a delayed announcement from Meta for their participation in the previously announced $5B conduit network deal back in August," Louthan added.

Lumen shares turned negative in morning trading, reversing early gains.