Why 3D Systems Corporation Stock Popped More Than 9% in the Past 2 Trading Days

3D Systems Corporation's stock price is now above where it was when it got clobbered earlier in the month after releasing weak preliminary earnings and forward guidance.

Feb 18, 2014 at 11:11PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

If you're following the 3-D printing space, you know volatility is par for the course. That said, shares of industry juggernaut 3D Systems Corporation (NYSE:DDD) have been particularly strong over the past two trading days, rising 4.5% on Friday and then tacking on another 4.4% on Tuesday (the market was closed on Monday) for a total two-day rise of 9.1%.

3D Systems' stock closed at $77.14 on Tuesday, so it's now higher than it was earlier in the month before investors pummeled the stock after the company announced much-weaker-than-expected preliminary full-year 2013 earnings results and 2014 earnings guidance.

Here are the likely reasons for the recent strength in 3D Systems' stock:

3D Systems-Hasbro partnership
3D Systems Corp. (DDD) announced on Friday that it's teaming with toy giant Hasbro (NASDAQ:HAS) to exclusively co-develop and commercialize innovative play 3-D printers and platforms later this year.

Certainly, "play 3-D printers" would appeal to some families interested in providing play experiences for their children that are both fun and educational. Additionally, if a family's first 3-D printer is a 3D Systems/Hasbro (I'd imagine they'll be co-branded) play 3-D printer, it's probably likely the family will be more prone to buy a 3D Systems' printer when it's ready to move up to a "real" 3-D printer. So, this partnering seems like a good move for 3D Systems.

My guess would be that the play 3-D printer might allow kids and their families to use basic design software to design something and then print it out of Hasbro's PLAY-DOH.

This Hasbro collaboration is yet another example of 3D Systems partnering with dominant companies across a wide range of industries. For instance, 3D Systems recently announced it was teaming with Hershey Company (NYSE:HSY), which is the largest chocolate producer in North America, to produce 3-D printed edibles and a new class of 3-D printers to produce edibles. In November, 3D Systems announced it was partnering with tech behemoth Google on Project Ara. The goal of Project Ara is to create a large-scale 3-D printing manufacturing platform capable of producing customizable open-source modular smartphones.

3D Systems prints first 3-D printed hybrid robotic exoskeleton
3D Systems Corp. (DDD) announced on Tuesday that it teamed with Ekso Bionics to produce the first ever 3-D printed hybrid exoskeleton robotic suit, which recently debuted at a Singularity Univ.-hosted event in Budapest. The suit was made for Amanda Boxtel, whose skiing accident in 1992 left her paralyzed from the waist down.

The hybrid 3D printed robotic suit enabled Amanda to stand and walk, assisted with crutches, during the event. "After years of dreaming about it, I am deeply grateful and thrilled to be making history by walking tall in the first ever 3D printed Ekso-Suit, made specifically for me," she said.

3D Systems' designers scanned Amanda's thighs, shins, and spine so the suit would be custom fit for Amanda. A 3-D printer then produced the Ekso suit from the scans. Mechanical actuators and controls, which Ekso Bionics manufactured, were then integrated with the 3-D printed portion of the suit.

This heartwarming story underscores a key strength of 3-D printing:  3-D printing allows for products to be custom-made to fit individuals, which is of critical importance when we're talking about medical devices, such as exoskeletons, various orthopedic implants, dental implants, and the like. Traditional manufacturing techniques can't always produce such exact-fitting devices.

3-D printing stocks aren't the only growth stocks around. Here are 6 top growth picks.
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.


Beth McKenna has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, Google, and Hasbro and owns shares of 3D Systems, Google, and Hasbro. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers