NEW YORK (TheStreet) -- Investors are no longer seeing the world through rose-colored 3D glasses. Three-dimensional printing company 3D Systems (DDD) was among the hardest hit technology stocks on Thursday. Shares fell nearly 11% and sentiment on StockTwits.com swung to bearish, with 53% of investors on the site calling for more losses.
Some investors said that the chart indicated 3D Systems could continue to fall as low as $37 per share. The stock closed at $48.78 yesterday.
$DDD completion of a H&S would be at $37 area I think.-- AA (@CaptureTheBullFlag) Apr. 10 at 03:17 PM
3D suffers from a broad problem impacting all disruptive technology stocks: investors no longer believe that the growth story was much more than hype.
3D Systems and competing three-dimensional printing companies such as Stratasys (SSYS) and Voxeljet (VJET) promise to revolutionize manufacturing with the ability to print everything from car parts and shoes to concrete houses. Some companies even envision a future where consumers print their own toys and clothes at the click of a button.
But investors now doubt that businesses will adopt new manufacturing methods given the weaker global economy. And that means profit multiples like 3D's 40 times forward 2015 earnings aren't likely justified. Voxeljet shares fell 13% Thursday. Stratasys dropped nearly 7%.
China compounded concerns of a tepid U.S. recovery with Thursday's trade data that showed March exports in the world's second-largest economy fell 6.6% from the same period a year ago. The data also cast doubt on last year's reports, which many economists now say were likely inflated.