In late July, Peter Jameson from the U.K. submitted an article about 3D printing trends and the financial impact this could have on the 3D printing industry. The article raised a few eye brows as it was not following the media line. It certainly did not support the view that ‘everything was rosy in the garden’ for 3D printing companies.
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The article painted an alternative view of the market for 3D printers which made several of the 3DPrintWise crew at best ambivalent towards the opinions expressed by Peter. There was little doubt that more 3D printing was going on around the world but he was forthright and his opinions rankled. However, as we shall see, growth is not translating into revenue for one of the main manufacturers of 3D printers and the points made are becoming debatable.
Let’s refresh our memories on what Peter had to say about the 3D printing industry. To summarise, the article basically said:
- Danger of a bubble being created by the media hype.
- Likelihood of a stock price crash following media pumping.
- Analysts are finger waving on predicting growth in terms of revenue.
- Over-crowdfunding (basically most 3D printer start-ups will fail).
- No killer applications as yet for 3D printing.
- Bright spot – medicine is a significant market (not fickle).
- Supply chain disruption from locally based additive manufacturing but when?
If you would like to read the original article in full (3D Printing Trends) it is perhaps a bit more balanced but nonetheless, stresses the points above.
Editor’s Opinion: “Looking back it is amusing to see some of these opinions now being spoken about by commentators. Especially recent news articles about crowd funding where some say say the market is saturated.
One wonders if the intention by many of these fledgling enterprises is to bank the money, knowing full well that their chances of commercial success are slight. It seems as each day passes there is a new 3D printer ready to be launched on Kickstarter or indiegogo but requires funding to do so. Where are the conventional lenders?”
With the main corporate heavyweights, Stratasys Ltd seems to be holding its own but only just. The year to date performance of the stock price doesn’t look stellar. However, there is clearly a hangover from the exuberance shown at the turn of the year. There has also been some recent recovery with better than expected earnings.
3D Systems would appear to be a different story. The stock price YTD looks like it isn’t recovering. It is also a concern that the CEO and CFO of 3D Systems have apparently been selling significant holdings in their own personal stakes. Notably some analysts have also moved quickly to downgrade DDD stock. Some have suggested that 3D Systems have been losing market share but who can really say. What’s with out doubt is the general NASQAQ index has easily outperformed both of these stocks.
This all leads to a question. If the market is expanding by CAGR 27% then even a small loss in market share does not account for 3D Systems apparent fall from grace.
It would be interesting to get your opinion on what is going on with DDD and the general market at large.
Are we seeing a correction in the future value of these companies? You will need to make up your own mind.
Disclaimer – Nothing in this article constitutes investment advice. The content should not be taken as the basis of a decision to buy or sell financial instruments of any kind. You should always seek out and consult regulated and professional advisors when making investment decisions.