3D Systems Stock Skyrockets: Here’s Why Investors Are Piling In

3D Systems just became Wall Street's latest adrenaline rush—shares are blasting off like a SpaceX launch. What's fueling the frenzy?

The Short Squeeze Play: Bears got caught with their algorithms down as retail traders piled in, turning a sleepy industrial stock into a meme-worthy rocket.

Institutional FOMO: Suddenly every hedge fund manager 'always believed' in additive manufacturing—right after their quant models flashed buy signals.

The Cynical Take: Another case of 'narrative investing' where fundamentals matter less than a good story and a chart that goes ↗️. Remember folks—what goes parabolic usually comes down faster than a 3D-printed parachute.

Second time's the charm

3D Systems posted its second-quarter earnings release after market close on Monday, divulging that its revenue landed just shy of $95 million. This was lower than both the second-quarter 2024 figure ($113 million), and the consensus analyst estimate (nearly $104 million).

Image source: Getty Images.

Rather surprisingly, however, 3D Systems flipped hard into profitability under generally accepted accounting principles (GAAP), producing a net income figure topping $104 million (which was, by the way, higher than its revenue figure). A large asterisk next to this line item, however, is the company's sale of its Geomagic software portfolio, a $123 million deal that was closed this past April.

Stripping that plus other non-recurring items out of the equation resulted in a non-GAAP (adjusted) net loss of $0.07 per share, which was at least much narrower than the $0.14-per-share deficit in the year-ago period. It also beat the average pundit net loss projection of $0.11.

In its earnings release, 3D Systems CEO Jeffrey Graves said its second-quarter performance derived from "an intense focus on our cost structure and operational efficiencies, in the face of a continuously challenging macroeconomic climate for our industry."

A pundit gets 25% more positive

On Wednesday, one analyst tracking 3D Systems stock became more bullish on its future. Craig-Hallum's Greg Palm expressed this by lifting his price target on the stock by 25%, from $2 per share to $2.50. He isn't quite in the buy camp yet, however, as he maintained his hold recommendation.