Well, it appears to be HP’s fault.
3D Systems (DDD) took a good hit during the last 2 trading days. There aren’t many explanations around, but the fact that Stratasys (SSYS) also took a good hit points toward a common denominator.
If we add that HP’s results and outlook presentation occurred simultaneously and that investors have been generous with HP, then we have a probable cause. Sometimes a chart says it all:
Graph 1 – 3D Systems vs Stratasys vs HPQ
Quick take:
This might be a serious overreact. Why?
1 – SSYS and DDD have around for a long time, and by now they are established companies in the field of additive manufacturing.
2 – They have established sales channels and several clients in the manufacturing sector and they have been profitable in the past.
3 – HP is still playing catch-up in several areas.
4 – HP entering the field confers more credibility and visibility to the market of additive manufacturing, which might benefit the industry as a whole.
5 – A phase of consolidation is likely to happen down the road. Other behemoths might feel compelled to enter the market through acquisitions and SSYS and DDD are clear targets.
All-in-all, it seems like a long play for both companies.
Further reading:
Investment Gems 