The Tesla (NASDAQ:TSLA) halo lifted nearly all companies in the electric vehicle space. It also raised the value of lithium mining, battery-electric, and auto manufacturing stocks.
The rise in 3D printing stocks cannot be ignored. Companies like Nano Dimension (NASDAQ:NNDM) are up by nearly five-fold in the last year. In the last decade, NNDM has a long way to go. The stock traded at over $80 in 2016.
Nano Dimension needs cash. On Jan. 15, it priced a direct offering of $9.50 per ADS on 35 million shares. This raised $332.5 million. After seven dilution events, the stock continues to rise. The demand for 3D printing manufacturers is very strong.
That demand may not last.
3D Systems (NYSE:DDD) and Stratasys (NASDAQ:SSYS) are up on investor euphoria for the sector. To 3D Systems’ credit, the company posted optimistic preliminary Q4/2020 results. It announced the sale of a non-core software business, Cimatron, and GibbsCAM, for $64.2 million. It also forecast Q4 revenue in the range of $170 – $176 million.
Investors rewarded DDD stock by bidding the stock from $11 to over $30. With short interest of 28% and ongoing losses ahead, expect 3D Systems to issue stock. When that happens, lookout. The stock could plunge after the buying frenzy ends.