Investors are taking a one-dimensional view of 3D Systems.
The maker of 3D printers reported earnings per share that beat by a penny but revenue fell short and the guidance was uninspiring.
"While we may face lingering economic uncertainties in parts of the world, we expect to continue to benefit from robust R&D and manufacturing spending by our customers worldwide," said CEO Avi Reichental in a statement.
Shares of 3D, which makes the popular Cube printer, tanked more than 20% early Monday.
The company's previously announced 3-for-2 stock split also went into effect Monday.
It seems like 3D may still be a little ahead of its time. At least that's what some StockTwits traders seem to think.
DarsieT3Live
Warned on 3-D printers Friday in Morning Call http://t.co/l7ML6tVOXP numbers (and reality) didn't justify hype $DDD $SSYS $XONE
And 3D's lukewarm report dragged down shares of Stratysys (SSYS) and France's Dassault Systems (DASTY) -- two others that dominate the field. Another black mark for 3D is its P/E. The stock is trading at 47 times 2013 projected earnings. That's pretty expensive for a relative newbie.
I don't know that I would have gone to that extreme. 3D is still pretty new technology so it's no wonder that anyone who's in the market would rush to protect their intellectual property rights. Now, I'm not saying whether 3D Systems had a case or not, I'm merely saying they had a right to question the newcomer.
Well if 3D was in bubble territory, it looks like that bubble has burst. Maybe that's a good thing. Both the company and investors can take a realistic view of the future.