When Nano Dimension (NASDAQ:NNDM) issued shares almost monthly, investors should have realized that the stock’s rise would eventually fall. After the bubble pop in 3D printing stocks, NNDM is now $10 below yearly highs.
Stratasys (NASDAQ:SSYS) selling seven million shares on March 3, raising $200 million, is another negative development. Continued shareholder dilution for SSYS investors is a headwind.
3D Systems (NYSE:DDD) did not fare any better either. The company posted a Q4 profit miss as revenue rose 5% Y/Y to $172.7 million. The 10-K filing delay raises uncertainties, too. Its divestiture of Cimatron and GibbsCam software is delaying the 10-K filing.
3D Systems’ GAAP operating income of just $700,000 and a GAAP net loss of $19.8 million is unacceptable. 3D Systems continues to underperform and lose money.
The sharp drop in the technology sector is spilling over to 3D printer stocks. Desktop Metal (NYSE:DM) rose from $10 to a high of $34.94 before the break-down. Last Aug. 2020, it went public by reverse merging with a blank check company, Trine Acquisition (NYSE:TRNE). That valued the company at $2.5 billion. DM stock is still well-above those levels. Investors did not give up yet.
Let the dust settle before starting any position in this space. The selloff is mid-way through with valuation risks ahead.