Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why This 3D Printing Stock Soared 42% in December

By Beth McKenna - Updated Apr 17, 2019 at 5:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Materialise stock has been on a roller-coaster ride: It just plunged 13.4% Thursday.

What happened

Materialise ( MTLS -0.46% ) stock gained 42.3% in December, according to data from S&P Global Market Intelligence. That brought its 2018 gain to a whopping 57.6%,

However, shares of the Belgian-based provider of 3D printing software and services have declined 5.3% so far this month, through Thursday, Jan. 10. They had been continuing their positive momentum this month until Thursday, when -- BAM! -- they plunged more than 25% in early trading before recovering about half their losses and closing the day down 13.4%. 

For context, the S&P 500 declined 9% last month and has returned 3.6% so far this month. Shares of the two big 3D printing players, 3D Systems and Stratasys, dropped 17.9% and 15.8%, respectively, in December, and are up 9.6% and 8.1% so far in January. 

Roller coaster with the group of cars about to go down a descend. Blue sky in background.

Image source: Getty Images.

So what

As for December's big pop, Materialise didn't release any material news last month, nor was any notable positive news reported about it. So we can't pinpoint the reason for the stock's big upward move.

MTLS Chart

Data by YCharts.

 It seems a possibility that the stock showed up on some traders' and/or investors'  radars due to Materialise's notable third-quarter earnings beat. (On Oct. 31, it reported earnings per share of $0.04, while Wall Street was looking for just $0.01. Moreover, revenue growth was strong, jumping nearly 45% year over year.) 

Materialise has been performing rather solidly recently and its stock has been rewarded. The following chart shows the stock's three-year performance, through Jan. 10: 

MTLS Chart

Chart should say "Data to 1/10/19." Data by YCharts.

As for Thursday's big drop, it would seem that some profit-taking was at play, after the stock's huge run-up in December.

Now what

While there are things to like about Materialise, for now, most investors should probably stay away from its stock until the volatility dust settles. More profit-taking could be coming.

Check out all our earnings call transcripts.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Materialise NV Stock Quote
Materialise NV
MTLS
$23.70 (-0.46%) $0.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
673%
 
S&P 500 Returns
142%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.