3D Systems and 3D printing market – rising stars?

3D sys­tems marks the begin­ning and tra­di­tion­al home for the 3D print­ing world. The founder Chuck Hull invent­ed stere­olyt­ic 3D print­ing which was the tech­no­log­i­cal ground for the com­pa­ny. In this form of 3D print­ing, a resin is hard­ened lay­er by lay­er with lasers cre­at­ing the 3 dimen­sion­al object.

Since his inven­tion, the com­pa­nies prod­uct port­fo­lio has increased with new print­ing tech­niques for var­i­ous cus­tomer seg­ments.
This blog post sum­ma­rizes the his­to­ry, cur­rent sit­u­a­tion and poten­tial future of the firm with regard to prod­uct devel­op­ments and the com­pa­ny val­ue (stock price).

History and customer segments

3D sys­tems always tar­get­ed indus­tri­al users such as man­u­fac­tur­ers or air­craft pro­duc­ers like Boe­ing. The com­pa­ny offers 3D print­ers, scan­ners, soft­ware, mate­ri­als and con­sult­ing ser­vices to their indus­tri­al cus­tomer seg­ments.

End of 2014 the 3D print­ing hype peaked and the pri­vate mar­ket was the indus­tries hottests top­ic. With Start-Ups as Maker­bot and Form­labs, 3D sys­tems felt forced to pro­duce a 3D print­er for the pri­vate mar­ket them­selves. And this is how the cube devices were born. These cubi­cal machines were ahead of their time in many aspects. How­ev­er, the prod­uct idea was no suit­able for the open-source mind­set at that time and too sim­i­lar to the close apple prod­uct strat­e­gy.

The sales fig­ures con­firmed this and the entire prod­uct line got dropped. At the same time the stock price was at its low­est lev­el and the firm was still haem­or­rhag­ing mon­ey. For this rea­son, the CEO in charge left and the com­pa­ny moved back to indus­tri­al mar­kets..

Company value and Share price

Since the hype in 2014, the use of 3D print­ers at the indus­tri­al lev­el is increas­ing steadi­ly. Mean­while, the com­pa­ny re-aligned to its pri­or core strat­e­gy and pro­duc­tion for addi­tive man­u­fac­tur­ing. The prod­uct range is again slimmed down on inno­v­a­tive and sta­ble mar­kets.

The same is true for the share which is cur­rent­ly ris­ing steadi­ly for the past year. And all of this after a down­trend in 2015 fol­lowed by a trend more or less side­ways for the past 2 years. In 2018, the share showed a steady upward move­ment which is true for most of the 3D print­ing mar­ket. You can also see the typ­i­cal short-term jumps upwards and back to the steadi­ly ris­ing fun­da­ment.
Edit 05.01.19: This sup­port line for 3D Sys­tems could not hold for­ev­er and the price went below this sup­port line end of 2018 (A sim­i­lar price devel­op­ment hap­pened in 2017).

3D Systems and 3D printing market rising stars increase over a year stock price and analysis trading

Summary

The 3D print­ing mar­ket in gen­er­al and 3D sys­tems in par­tic­u­lar seem to make the U‑turn after the dam­ag­ing hype in 2014. The sta­bi­liza­tion of the share prices through­out the mar­ket reflect this devel­op­ment.

On the one hand, this offers investors an attrac­tive option. The price devel­op­ment in this growth mar­ket is rel­a­tive­ly (not entire­ly) inde­pen­dent of the over­all mar­ket e.g. S&P500. On the oth­er hand, Mak­ers, 3D print­ing fans, engi­neers and entre­pre­neurs can pre­pare for an excit­ing time. The job mar­ket will be full of pos­si­bil­i­ties and demand while we can enjoy the tech­no­log­i­cal achieve­ments in our every­day life’s.

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