3D Systems' Guidance Exceeds Estimates: Further Upside Ahead
3D Systems (DDD) reported a solid quarter, as it provided a guidance that exceeded expectations. Net income growth is likely to stall as 3D Systems is expected to aggressively invest into its business in order to drive organic sales growth. Acquisitions and high operating expenses seem to go hand-in-hand with high momentum names.
Based on the information provided in the earnings conference call, much of the negativity surrounding the stock isn't justified at the present moment. Besides the concerns surrounding the high earnings multiples, and the euphoric rise of the stock price, there's not a whole lot here to short.