3DPrintWise has published quite a few articles on 3D printing trends and the performance of two major stocks who manufacture 3D printers. Namely, 3D Systems and Stratasys Ltd. Their stock prices are now approximately 60% down from one year ago.
What follows though is a bit different – it is like a big ‘told you so’ moment. It is actuality part of an argument about the significant declines in the valuations of these companies – vis à vis the stock prices have fallen considerably over the last year and it is very unclear what is coming next.
The Discussion
Peter Jameson: Well it does not matter what the Fool.com says or any stock analyst for that matter – the sell off in 3D Systems and Stratasys Ltd has continued unabated while the NASDAQ potters upwards nicely – Google Finance – DDD vs SSYS vs NASDAQ. Facts speak for themselves and as they say the ‘market is always right’. My article last June might have been unpopular or even upset some people but it was my honest opinion of the fundamentals …
Disgruntled Investor: It is easy to say that people investing in those stocks (SSYS and DDD) should have seen the writing on the wall or looked at Peter’s opinions in early June 2014 (trends for 3D printing). Even the follow up article in September 2014 (3D Printing Industry Trends). Both were against the grain. However hindsight is a wonderful thing. I admit, some common sense was on Peter’s side looking back.
Peter Jameson: The technology was a bit too hot with far too much big media pumping it as the best thing since slice bread. Headlines like 3D printing is going to cure the world’s problems from environmental catastrophes to solving world hunger. They pulled just about every thing they could out of the bag for news headlines.
Editor: We could of course blame the big media stations for the ‘pump and dump’ Peter but frankly that would be only half the story wouldn’t it? Most of the stories were real even if the headline claims at times were stretching it a bit.
Peter Jameson: Media going over the top was a red flag for me.
Editor: What is more to blame (my opinion) is a failure of strategy in both these corporations. They did not take a conservative approach and went too big and too fast. Frankly, I have seen ‘amateurish’ and it has been played out here in spades. The senior management is at fault in my opinion but I doubt any of their heads will roll.
Peter Jameson: They never do.
Editor: Internally many companies believe their own propaganda which gets amplified by the media in an unholy feedback loop. Now profits and growth have failed to materialize while costs have probably grown – what a surprise!.
Disgruntled investor: An ‘unholy feedback loop’, nice turn of words but what’s next? Will we get a recovery in the stock prices or is it over for them? I am thinking of taking my losses.
Crew: 3D printing has a future for sure but it needs to be kept in perspective. It is not a panacea to everything and for everybody. It’s a long term bet. Wall Street doesn’t take prisoners and investing in 3D printing is for the brave.
More Crew: Many of us think making things with 3d printers is fun and interesting. Life is a bit short and if playing around with our machines makes us happy then so what if these two corporations have caught a cold or even disappear. There are plenty of up and coming businesses with new ideas. Additive manufacturing and consumer based 3D printing isn’t going to die. It is about innovation. Not many computer companies made it did they?
Editor: Sympathy Crew.
Peter Jameson: I was surprised my original article was published. I’m still a big fan of 3D printing though. I’d prefer not to say what I think will happen over the next year. I will be wrong. All I will hope for is prices may be bottoming out as the accountants will be getting a grip. Costs will need to be cut if these businesses are going perform. I did not short these stocks and neither did I own them.
Crew: What is shorting?
Editor: We will leave it there.
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