It was a eye opening day for two of the largest publicly traded 3d printing companies in the world today.
Stratasys and 3D Systems both fell more than 8% on Monday following a downgrade from the financial services firm Piper Jaffray. The downgrade included some sobering language on future sales projections for both companies, attributing the expected decline to HP's entry into the 3d printing market.
"We believe several customers have and will likely continue to pause purchasing to assess these new (HP) offerings," analyst Troy Jensen wrote. "Our 2Q16 survey results were the poorest we have seen in recent memory, and given the internal challenges both Stratasys and 3D Systems have, we have become more cautious on both companies."
This helped lead a 9.1% drop in value for Stratasys and a 8.4% loss for 3D Systems. Both companies moved below their 50 day moving averages due to the declines.
On Stratasys, Jensen wrote that "the overall tone remained extremely negative and system demand has seemed to have hit a recent low," referring to surveys his firm did with industrial 3d printing customers.
HP's Multi Jet Fusion 3d printer has been well received by some of its initial partners, however it's unclear why a downgrade based primarily on HP's entry into the market came today when it's been clear for several months that HP was able to deliver its machine to large industrial clients.