• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

The Dumpster Fire Sub-Sector of Tech

Tech Letter

Avoid 3D printing stocks.

It’s not because I hate these companies, but when I delve beneath the surface of these business models, they just aren’t good enough.

3D printing is a great phenomenon, but so was the digital handheld pet Tamagotchi invented by Japanese company Bandai in 1996.

Tamagotchis only went so far, and so will 3D printing.

Take for instance, in just a decade, 3D-printed guns have come a long way from a fully functional 3D-printable semiautomatic pistol carbine entirely printed at home to what now appears to be a rocket launcher-like device.

Does that mean that the U.S. military will start manufacturing Blackhawk helicopters and industrial-grade surface-to-air missile weapons on a 3D printer?

Hell no.

The fact is that for the crème of the crop products, the ones that bring in the revenue that make your eyes big, manufacturers aren’t going to choose a 3D printer to make these products.

If 3D printing isn’t used for these premium products, it means that building an accelerated revenue model will be almost impossible.

Take for instance automobiles, they aren’t a subscription-based business, but car companies scale globally and to all parts of the globe.

I can’t think of one country that doesn’t need cars as a main input in their domestic economy apart from possibly Papa New Guinea.

A classic car dealership might have a 3D printer to replace a few cosmetic parts and if the parts squeak, it's either that part or nothing as there are no more spare parts.

For high quality German cars, drivers would need to wait for the specific part from the specific supplier.

Car manufacturers have high standards, car parts have specific requirements concerning strength, fatigue, heat, fire, color, finish level, recycling, the classic parts are rather cheap to make for cars that sell in high volume, car parts are in general not designed to make with a 3D printer.

Good luck if you’re waiting around for an entire car to be printed, because it will probably never happen.

Most parts in cars need to be strong, lightweight, heat resistant, have a fine finish.

They are often quite big it would be unfeasible to have a 3D printer the size of a 500 sq foot room.

3D printers that size also scale poorly.

With all this being said, let’s take a peak at the financials.

One of the top 3D printing companies Stratasys Ltd. (SSYS) achieved $663 million of annual revenue in 2018 and fast forward to 2021, they decelerated to $607 million.

Not only is revenue decelerating, but they don’t turn a profit.

SSYS lost $62 million in 2021 and they have lost money for the past 4 years.

Let’s find another example in 3D Systems Corporation (DDD) headquartered in Rock Hill, South Carolina.

In 2018, they achieved $691 million of annual revenue and continued to decelerate and earn $615 million in revenue in 2021.

Essentially, some of the largest 3D printing stocks have topped out at a sub-$700 million per year clip and are going in the opposite direction.

Loss-making and revenue deceleration are the two characteristics that investors hate most.

One of the only 3D printing companies to grow revenue in the past 4 years was Proto Labs, Inc. (PRLB).

In 2018, PRLB achieved annual revenue of $445 million and surged ahead to make $488 million in revenue in 2021.

These growth numbers are paltry relative to any other tech sub-sector.

In short, these companies have little access to big revenue-making opportunities, and lucrative industries don’t view them as high quality enough to mass produce anything of real value.

Decelerating revenue, decelerating EPS, and unprofitability are all deal breakers.

Avoid 3D printing stocks like the plague.

 

3d printing

 

3d printing

 

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-03-25 15:02:492022-03-30 23:11:53The Dumpster Fire Sub-Sector of Tech
You might also like
October 16, 2019
January 16, 2019
March 25, 2022
Is 3D Printing a Waste of Space?
Why 3D Printing Will Boost the Airplane Industry
The Additive Manufacturing Boom

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: Quote of the Day - March 25, 2022 Link to: Quote of the Day - March 25, 2022 Quote of the Day - March 25, 2022 Link to: March 25, 2022 Link to: March 25, 2022 March 25, 2022
Scroll to top