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.

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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 Unprofitable Stocks That Fall Short

ESTC Cover Image

Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.

A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here are three unprofitable companiesto steer clear of and a few better alternatives.

Elastic (ESTC)

Trailing 12-Month GAAP Operating Margin: -2%

Built on the powerful open-source Elasticsearch technology that powers search functionality for thousands of websites worldwide, Elastic (NYSE: ESTC) provides a search and AI platform that helps organizations find insights from their data, monitor applications, and protect against security threats.

Why Do We Think Twice About ESTC?

  1. Sales trends were unexciting over the last three years as its 19% annual growth was below the typical software company
  2. Suboptimal cost structure is highlighted by its history of operating margin losses
  3. Projected 1.3 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position

Elastic is trading at $84.99 per share, or 5.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ESTC.

Sprout Social (SPT)

Trailing 12-Month GAAP Operating Margin: -12.6%

Born from the recognition that businesses needed a centralized way to handle their growing social media presence, Sprout Social (NASDAQ: SPT) provides a comprehensive software platform that helps businesses manage, analyze, and optimize their presence across various social media networks.

Why Does SPT Give Us Pause?

  1. Historical operating margin losses show it had an inefficient cost structure while scaling
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

At $15.79 per share, Sprout Social trades at 1.9x forward price-to-sales. If you’re considering SPT for your portfolio, see our FREE research report to learn more.

Lumen (LUMN)

Trailing 12-Month GAAP Operating Margin: -1.7%

With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE: LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers.

Why Do We Think LUMN Will Underperform?

  1. Annual sales declines of 9.5% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Sales were less profitable over the last five years as its earnings per share fell by 16.4% annually, worse than its revenue declines
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.2 percentage points

Lumen’s stock price of $4.99 implies a valuation ratio of 1.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LUMN doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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