What Happened?
Shares of 3D printing company 3D Systems (NYSE: DDD) fell 1.9% in the afternoon session after the company announced a significant change in its software strategy, revealing plans to sell two of its software platforms.
3D Systems stated it would divest its Oqton® Manufacturing Operating System and 3DXpert® metal printing software to Hubb Global Holdings. The transaction was expected to close in the fourth quarter of 2025. This move was part of a strategic shift to concentrate development efforts on its proprietary polymer solution, 3D Sprint®. While the company framed the divestiture as a way to accelerate industry-wide adoption of metal 3D printing, the stock's decline suggested investor concern over the new direction.
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What Is The Market Telling Us
3D Systems’s shares are extremely volatile and have had 71 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 6.4% on the news that a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve.
The Personal Consumption Expenditures (PCE) price index, the central bank's preferred gauge of inflation, showed a slight year-over-year increase in August but did not surprise economists. This report was met with relief on Wall Street, as it suggests inflationary pressures remain contained, giving the Federal Reserve more leeway to continue its monetary easing policy. Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.
3D Systems is down 9.8% since the beginning of the year, and at $2.89 per share, it is trading 38.8% below its 52-week high of $4.72 from February 2025. Investors who bought $1,000 worth of 3D Systems’s shares 5 years ago would now be looking at an investment worth $588.19.
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