July 17, 2013
Yesterday was a bad day for many NASDAQ stocks, especially the 3D Printing sector. Ex One (XONE) was hit the hardest, dropping a massive 12.25% by the end of the day. This was caused by the stock being downgraded from a "Buy" rating to a "Hold" rating by firm BB&T Capital Markets. BB&T downgraded the stock because they thought that a "takeout", or acquisition of the company, was unlikely in the near future. It is thought that share prices rose so high because a takeout was anticipated, and since one will most likely not occur for a while the stock will soon plummet. XONE's decline caused Stratasys (SSYS) and 3D Systems (DDD) to drop as well. Both of these stocks are major components of the 3-D printing sector, and as such responded to XONE's drop in a similar fashion. SSYS was down $5.90, more than 6%. DDD was down $1.40, almost 3%.
Yesterday was a bad day for many NASDAQ stocks, especially the 3D Printing sector. Ex One (XONE) was hit the hardest, dropping a massive 12.25% by the end of the day. This was caused by the stock being downgraded from a "Buy" rating to a "Hold" rating by firm BB&T Capital Markets. BB&T downgraded the stock because they thought that a "takeout", or acquisition of the company, was unlikely in the near future. It is thought that share prices rose so high because a takeout was anticipated, and since one will most likely not occur for a while the stock will soon plummet. XONE's decline caused Stratasys (SSYS) and 3D Systems (DDD) to drop as well. Both of these stocks are major components of the 3-D printing sector, and as such responded to XONE's drop in a similar fashion. SSYS was down $5.90, more than 6%. DDD was down $1.40, almost 3%.
Today brought better news for investors in
these companies. Notably, analyst B.G Dickey recommended buying XONE, saying
that the stock's long-term outlook was very positive. He increased his price
target from $46 to $67. This optimistic news caused XONE's price to rise dramatically
by $5.48, or 9.72%. Other 3-D printing stocks responded favorably as well. DDD
closed up one cent, or 0.02%. Stratasys closed up $1.67 (1.87%). Analysts can
have a big effect on stocks, which is obvious based on XONE's performance these
past few days. As XONE's price returns to what it was before the crash, t may
present a window of opportunity for investors to earn lots of money. However,
be wary; profits can be wiped out instantly as this volatile sector jumps up
and down.
RELAVENT STOCKS:
Ex One Corp. (NASDAQ: XONE)
3D Systems (NASDAQ: DDD)
Stratasys (NASDAQ: SSYS)Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
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