Playing the Stock Market With 3D Printing

3D Printing Stock Market

Image courtesy of jscreationzs at FreeDigitalPhotos.net

Some may be surprised to learn that a few 3D printing-focused companies are publically traded billion dollar entities.  Companies such as 3D Systems Corporation (www.3dsystems.com) (NYSE: DDD), Stratasys  Ltd. (www.stratasys.com) (NASDAQ:  SSYS), ExOne Co. (www.exone.com) (NASDAQ: XONE), and Proto Labs, Inc. (www.protlabs.com)(NYSE: PRLB) generate a significant portion of their revenue from 3D printing and all but Proto Labs has a market cap north of $1 billion.

The interest in 3D printing has even led to the establishment of two separate stock indices tracking the industry.   The STOXX® Global 3D Printing Tradeable Index (http://www.stoxx.com/indices/index_information.html?symbol=STG3DPP) and the Solactive 3D Printing Index (SOLDDD) were both launched this year with the intent to provide investors the ability to track and invest in the sector.  The composition of the indices varies and the threshold for inclusion is low (1% of revenue from 3D printing for the STOXX® Global 3D Printing Tradeable Index) or broadly defined (“…all companies that have a current or future focus on the 3D printing industry…” and that meet other general requirements).  The STOXX® Index is up over 60% ytd and SOLDDD is up a similar amount since inception.

As 3D printing moves from a purely technical area to one of more general interest, Wall Street is paying more attention.  On Aug. 26, Citi began coverage of both 3D Systems Corp. and Stratasys, leading to the stocks to close the day up 9%  and 5% respectively.

With the advent of industry-focused indices and the broadening of Wall Street analyst coverage of the largest companies in the space, the growth of 3D printing is poised to accelerate significantly.  With Wall Street interest comes money, and with money comes opportunity for innovators, entrepreneurs, and current market leaders to put their growth plans in action.

Stay tuned for more updates on Wall Streets views on the industry.

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