Re: Lumen Edge Computing Solutions meet 97% of U.S. enterprise demand within 5 millisecon
Essentially, yes. They can meet almost all the demand there is. The problem is that the demand doesn't exist at any significant level, despite all the buzz about revolutions. The proof is in the dismal enterprise sales/revenue trends.
They spent billions of dollars and took focus away from more profitable ventures to build out an edge network that isn't being utilized effectively, and won't be for at least another few years. This is looking more and more like a negative NPV investment...par for the course for Storey and Dev.
I was fine with revenue declines as long as the gap was narrowing, margins were stable/increasing and the focus remained on shareholder returns and growing FCF/share. That was the margin of safety. After the asset sales, all that has been thrown out the window and the company is left with declining FCF, EBITDA, and margins, a likely dividend cut and no improvement in the revenue trend. Shameful, gross mismanagement of good assets.