When a stock drops more than 90% over a two year period, one has to ask, what went wrong? In the case of 3D Systems Corporation (NYSE:DDD), that answer is very difficult to answer, leading me to believe that the stock was simply overhyped, and then oversold. There is no doubt that 3D printing was overhyped back in 2012 and 2013. At the peak of the hype cycle, shares of 3D Systems Corporation (NYSE:DDD) rose to close to $100 a piece, the market cap of the company was measured in the multi-billion dollar range, and traders were seemingly leaping over each other to get a piece of the action. Here we are in 2016, and things are much different. The potential of the 3D printing market is still there, but the hype is gone. Investors seem to be realizing that competition, a slower than expected adoption rate, and more sane valuations have set in.
Today shares of 3D Systems Corporation (NYSE:DDD) are trading up by $0.62 or 5.81%, continuing an upward trend which started back in the end of January when shares were trading at 52-week lows. Since then the stock has surged more than 85%, indicating to us that investors now feel comfortable entering the once- overhyped stock. It’s not just 3D Systems Corporation (NYSE:DDD) which has moved higher as of late. In fact just about every 3D printing stock is up big over the last month and a half. All indications lead us to believe that the market may finally be valuing these companies at a fair price. Earnings will drive further gains or stop the recent rally, but I feel as though we are finally seeing some logical valuations for once.
The next year will be an important one for all the 3D printing-related stocks as competition heats up and we begin to see where each company stands within the market.