Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Services Stocks in Hot Water

MLKN Cover Image

Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. But cutbacks in corporate spending and the threat of new AI products have kept sentiment in check, and over the past six months, the industry has tumbled by 9%. This drawdown was worse than the S&P 500’s 1.9% decline.

Investors should tread carefully as many of these companies are also cyclical, and any misstep can have you catching a falling knife. On that note, here are three services stocks that may face trouble.

MillerKnoll (MLKN)

Market Cap: $1.15 billion

Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ: MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.

Why Do We Steer Clear of MLKN?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 7.8% annually over the last two years
  2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 9.6% annually
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.7 percentage points

At $17 per share, MillerKnoll trades at 6.9x forward P/E. Read our free research report to see why you should think twice about including MLKN in your portfolio.

IBM (IBM)

Market Cap: $239.4 billion

With a corporate history spanning over a century and once known for its iconic mainframe computers, IBM (NYSE: IBM) provides hybrid cloud computing platforms, AI solutions, consulting services, and enterprise infrastructure to help businesses modernize their operations.

Why Do We Pass on IBM?

  1. Sales tumbled by 1.3% annually over the last five years, showing market trends are working against its favor during this cycle
  2. Flat earnings per share over the last five years lagged its peers
  3. Underwhelming 11.4% return on capital reflects management’s difficulties in finding profitable growth opportunities

IBM’s stock price of $263 implies a valuation ratio of 24.1x forward P/E. To fully understand why you should be careful with IBM, check out our full research report (it’s free).

Applied Digital (APLD)

Market Cap: $1.71 billion

Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ: APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.

Why Does APLD Worry Us?

  1. Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Applied Digital is trading at $7.58 per share, or 13.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why APLD doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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