In last week’s State of the Union address, President Obama mentioned Apple and 3D printing. Apple CEO Tim Cook was given a prominent spot in the first lady’s box. Obama looked at Cook and said, “This year, Apple will start making Macs in America again.” Cameras focused on Cook and he smiled.
The morning after the speech there was no impact on Apple stock. But 3D printing stocks were quite a different story.
Obama said, “A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything.” Four 3D printing stocks were hot on the morning after the speech. The real hot number was Proto Labs.
On the day after the speech, Proto Labs traded as high as $52.50, the previous close is $42. In all fairness, it was not all Obama, Proto Labs reported strong earnings. Proto Labs reported $0.31 per share compared to consensus of $0.26; but revenues rose only slightly above the consensus. On the day after the speech, 3D Systems traded as high as $66.10 and the previous close was $63.07; Stratasys traded as high as $77.57, the previous close was $75.52; and the recent IPO ExOne traded as high as $30.05, the previous close was $27.50.
3D stocks are over hyped and overpriced. 3D Systems trades at a P/E of 87. Stratasys trades at a P/E of 81. ExOne does not have earnings as it is losing money. The P/E of Proto Labs is 48.
Proto Labs is different from the other 3D stocks mentioned here in that it does not sell 3D printers, but offers 3D printing and custom machining as a service…Read more at Forbes