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What Does 2016 Hold for 3D Printing Stocks? – Motley Fool

by • January 14, 2016 • No Comments

Whilst none of us have a magic eight-ball that can accurately predict the upcoming, I ponder 3D printing stocks in general — that include those of the two largest industry players, 3D Systems(NYSE:DDD) and Stratasys (NASDAQ:SSYS) — are in for a subpar to flat year in 2016. At many, one or both of the leaders can post tiny gains, but only for the reason they’ve been beaten down so much over the last two years that decent bounces are possible.
The primary events listed at a lower place that may occur in 2016 have the future to affect 3D printing companies’ financial performances and, hence, stock prices.
1. Macroeconomic headwinds in the enterprise space can many likely go on

Ssys ConnexA Stratasys Connex 3D printing device for the enterprise market. Image source: Stratasys.
3D Systems and Stratasys have reported that there’s been a broad-based minimize in capital spending for 3D printing devices one of industrial customers. Both companies encountered this massive headwind in the first quarter of 2015, and it is go ond throcky their third-quarter earnings reports in November.
Stratasys’ management has attributed this primary slowdown to overcapacity in the field due to the sizeable number of 3D printing devices purchased during the previous few years. There’s a possibility, yet, that a few customers are delaying purchases to see what compelling new offerings can soon come to market.
There’s no reason to believe this headwind won’t go on into 2016.
2. 3D Systems can get a new CEO
3D Systems has been operating without a permanent CEO since former leader Avi Reichental abruptly exited the company in late October, so a successor can pretty be appointed in 2016. The right CEO may begin turning things around for the beleaguered company, yet this can be a complex task. The new CEO can face the headwinds discussed above. He or she can in addition many likely have to deal with the entrance of well-funded competitors into the market.
Triple D’s new leader can in addition have to handle a host of internal issues: several new product high end issues, a balance sheet many likely bloated with inflated goodcan values of acquisitions (investors should assume big writedowns), and a poor corporate culture, according to Glassdoor ratings and comments.
3. HP can many likely enter the 3D printing market
HP (NYSE:HPQ) plans to bring to market in 2016 a 3D printing device for the enterprise market that’s powered by its compelling Multi Jet Fusion innovation, that it announced in late 2014. The deep-pocketed 2D printing king claims its printing device can be 10 times faster than those powered by the major 3D printing technologies, while sporting high precision, high resolution, and brilliant color capabilities — and it can be priced less than the competition.
Tech companies frequently end up behind schedule for product commencees, yet, so HP’s commence can be delayed until 2017.
3. Carbon3D can many likely enter the 3D printing market
Start-up Carbon3D plans to commence in 2016 a 3D printing device for the enterprise market that’s powered by its futurely game-changing Continuous Liquid Interface Production (CLIP) innovation. CLIP harnesses UV light and oxygen to “grow” polymer parts continuously.
CarbonImage source: Carbon3D.
CLIP is reportedly 25 to 100 times faster than the major 3D printing technologies, and its materials possibilities are in theory tremendous. Speed and materials capabilities are one of the top hurdles holding back 3D printing of building increased inroads into making applications. So, CLIP has the future to disrupt the making sector. Obviously, it may in addition allow Carbon3D to take business of 3D Systems and Stratasys, not to mention voxeljet, that, like Stratasys, is solely involved in the polymers space.
We don’t have to go on blind faith that CLIP is super-speedy. Carbon3D co-founder and CEO Joseph DeSimone wowed the tech world when he demonstrated CLIP at the TED 2015 conference last March. The company has in addition wowed a few big names: It was first backed by Autodesk; raked in a $100 million funding round led by Google Ventures, Alphabet’s venture capital arm; and attracted revered former Ford CEO Alan Mulally to its board of directors.
It’s possible that this new product commence may in addition be pushed back to 2017.
4.More news can come out of Apple’s 3D printing plans
A patent application filed by Apple (NASDAQ:AAPL) for a one-of-a-kind color 3D printing device aimed at the consumer market was published in December. This will not necessarily mean the consumer tech giant can enter the computer 3D printing space, but it suggests that it is seriously thinking doing so.
What is many one-of-a-kind of Apple’s printing device concept is that it colors the object being printed while it is being printed. It has two nozzles — one for extruding the material being printed and the other for applying the coloring agent. The patent in addition contains an alternative method, that involves coloring the object after it is been printed.
This is the many questionable event on this list, and if Apple does decide to enter the market, it won’t take place for a few time. If and when it does, Stratasys can surely feel the impact on its computer unit, MakerBot.
5. Arcam can many likely obtain another multi-unit order of General Electric
The Swedish industrial metals 3D printing company obtaind an order in December for 10 of its electron beam melting (EBM) 3D printing devices of Avio Aero, a subsidiary of General Electric(NYSE:GE). One other multi-unit order of the GE subsidiary is almany surely on the horizon. GE can be via EBM systems to 3D-print low-pressure turbine blades out of titanium aluminide for its new GE9X jet engine, as Arcam CEO Magnus Rene confirmed on the company’s fourth-quarter 2014 conference call.
Rene has said he will not understand when General Electric can begin production, but that 2017 or 2018 was probable, that means the industrial giant can many likely require to ramp up in 2016.
Takeaway
2016 can many likely prove to be another challenging year for 3D printing companies in general. Despite the group’s beaten-down stock prices, I yet ponder new investors should generally remain away. Very rocky waters are many likely ahead due to macroeconomic headwinds and the probable entrance of well-funded competitors into the market.

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