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Stratasys Stock Lost a Third of Its Value in January

by • February 7, 2016 • No Comments

stratasys_logo_transparentThe last year has been a quite rocky one for industry leading 3D printing company Stratasys and their closest competition, 3D Systems. Their stock prices have been in what may be called a free fall since early last year and it hasn’t let up, actually leading into the usually lucrative holidays. Whilst 3D Systems seemed to be bringing the brunt of the stock market’s suddenly fickle feelings on 3D printing, Stratasys has been doing its level many to catch up to them. But why precisely is the biggest 3D printing device developer losing value when sat any timeal smaller in size companies are surging in market share and helping the industry move additional 3D printing devices than at any time?

January 2016 officially saw Stratasys as the worst performing of the high profile 3D printing stocks when it finished down by over 33%. In comparison, 3D Systems, which in addition under performed on the S&P 500, was down by of 18% for the month. Whilst there is many likely no singular reason for both companies’ ongoing dwindling fortunes, the stark fact is which the two many public faces of 3D printing are many likely bringing blowback of the entire industry overselling what the innovation is capable-bodied of. There is little doubt which the 3D printing hype train was being driven by the require to sell 3D printing devices to new users, which was excellent for the companies in the short term, but left both Stratasys and 3D Systems appearing like they were bringing advantage of their customers and holding a surplus of unsold 3D printing devices.


Stratasys stock was down by over 33% in January.

In the short term the reasons for Stratasys’ sudden dramatic stock drop in January is many likely unrelated to their ongoing devaluation and has additional to do with the company not long ago being downgraded by Jefferies and JP Morgan, which was a new blow for the company. Whilst 3D Systems was in addition downgraded by Jefferies, UBS, and Canaccord, their stock had previously fallen additional than Stratasys and only didn’t have as far to drop. But the new loss of confidence in both companies by Wall Street pros is many likely why the drop happened for Stratasys so suddenly.

We in addition can’t ignore the ongoing fear of a leading economic downturn in China contributing to their stock woes. Whilst Stratasys does not have much of a direct presence in China, as with many multi-national corporations their fortunes are tied quite closely with companies who do deal with China. Many of Stratasys’ customers deal directly in the Chinese market and appear to lose quite a bit if the bottom starts to fall out of it. Whilst a Chinese recession is not yet a certain thing, it has had an overall thrilling effect on the market while folks hold off on investing until a clearer picture of their economic next can be seen.

manufacturerbot ecosystem

Stratasys revealed which MakerBot may reduce their staff by 20% in October.

Ultimately howat any time, the lack of 3D printing device sales which Stratasys was able-bodied to generate in 2015 is going to go on to dog them for the rest of the year. At very least until the beginning of March when Stratasys has tentatively scheduled their report on its fourth-quarter and full-year 2015 year earnings. Hopefully Stratasys can have predicted their sales drop and compensated for it, for the reason their complexware sales fell by 14% in 2015 which may cause actually additional stock price drops if the company didn’t manufacture adonlyments. Their October restructuring, which saw a reduction in MakerBot staff of 20%, may have been too little too late, or only not adequate to stem the loss of sales.

Stratasys requires to either have cut costs adequate which profits don’t take a worthwhile dip, or hope which sales picked up in the last quarter of 2015 adequate to offset the rest of the year’s losses. It is going to be quite complex to sell their official line, which the downturn in sales is due to the industry expanding too rapidly, if they under-estimated the drop. Especially while other, smaller in size and additional nimble companies are reporting huge sales increases. Discuss these stock market updates in the Stratasys 3D Printing Stock Plummets forum over at 3DPB.com.