The Volatility of the Burgeoning 3D Printing Market
kyle maxey posted on January 31, 2013 |

Stock market, bubble, crashMarket dynamics are one of the most difficult things to understand, and unfortunately for investors, the fog of uncertainty that surrounds the market can lead to some tragic consequences.

Nowhere is that more true than in the burgeoning market of 3D printing stocks. As new companies enter the market, investors are trying to suss out exactly who leads this industry. In the early days, 3D Systems (DDD) seemed like the logical choice. However, over at Seeking Alpha, one author is questioning its place in the market.

“3D Systems (DDD) seems like an ideal stock for a speculator looking to make some quick cash. In the past 52 weeks, it's gained just over 260%.” The author continues, “Overall, 3D Systems has experienced the rapid gains as a result of being in the right place at the right time. When magazines started publishing articles about 3D printing and news stations started reporting about it, people looked to a few companies, primarily 3D Systems, to lead the industry. In reality, though, we can see that the 3D printing industry is still young.”

Seeking Alpha is correct, the 3D Printing market is still young, and as such it’s seeing a good deal of structural volatility. Take for example the recent blockbuster merger of Stratasys (SSYS) and Objet. Because of this merger, Stratasys is one of the leaders in the 3D printing market. But what’s more important is that the Stratasys and Objet merger is likely only the first of many that we’ll see in the next few years.

Again, this is all just wild speculation, and I’m unintentionally doing my part to add to the confusion in this market, but until the 3D printing industry matures, we’ll likely see more companies vying for the role of king of the industry…maybe their reigns will be long, but in a volatile, dynamic market, that's far from being a given. 

Read More at Seeking Alpha

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