What Happened?
Shares of 3D printing company 3D Systems (NYSE: DDD) jumped 2.9% in the morning session after the stock extended the positive momentum as its joint venture, the National Additive Manufacturing and Innovation Company (NAMI), announced a partnership with aerospace giant Lockheed Martin.
The collaboration will focus on qualifying aluminum 3D-printed components for use in the aerospace and defense sectors within the Kingdom of Saudi Arabia. NAMI is a strategic joint venture between 3D Systems and DUSSUR, a Saudi Arabian public investment fund. This partnership with a major player like Lockheed Martin signals a significant step into the high-value aerospace market, potentially opening up new revenue streams and validating the company's technology for critical industrial applications.
After the initial pop the shares cooled down to $2.29, up 2.7% from previous close.
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What Is The Market Telling Us
3D Systems’s shares are extremely volatile and have had 72 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 5 days ago when the stock gained 3.3% on the news that an unexpected drop in the Producer Price Index (PPI) for August, signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut.
The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% last month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.
According to the CME FedWatch Tool, the probability of a quarter-point rate cut at the next Fed meeting has surged to 90%. Lower interest rates typically benefit the industrial sector by reducing borrowing costs for new projects and expansion, potentially leading to increased economic activity and demand for industrial goods.
3D Systems is down 28.4% since the beginning of the year, and at $2.29 per share, it is trading 51.5% 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 $434.55.
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