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.

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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

AvidXchange (AVDX): Buy, Sell, or Hold Post Q1 Earnings?

AVDX Cover Image

AvidXchange trades at $9.93 and has moved in lockstep with the market. Its shares have returned 17.9% over the last six months while the S&P 500 has gained 16.8%.

Is there a buying opportunity in AvidXchange, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.

Why Is AvidXchange Not Exciting?

We're cautious about AvidXchange. Here is one reason why AVDX doesn't excite us and a stock we'd rather own.

Previous Growth Initiatives Have Lost Money

Return on equity, or ROE, tells us how much profit a company generates for each dollar of shareholder equity, a key funding source for banks. Over a long period, banks with high ROE tend to compound shareholder wealth faster through retained earnings, buybacks, and dividends.

Over the last five years, AvidXchange has averaged an ROE of negative 18.6%, a bad result not only in absolute terms but also relative to the majority of firms putting up 25%+. It also shows that AvidXchange has little to no competitive moat.

AvidXchange Return on Equity

Final Judgment

AvidXchange isn’t a terrible business, but it isn’t one of our picks. That said, the stock currently trades at 36.1× forward P/E (or $9.93 per share). At this valuation, there’s a lot of good news priced in - we think there are better opportunities elsewhere. We’d suggest looking at the most entrenched endpoint security platform on the market.

Stocks We Would Buy Instead of AvidXchange

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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.

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