What Happened?
Shares of 3D printing company Stratasys (NASDAQ:SSYS) fell 12.5% in the morning session after the company lowered its full-year financial outlook, citing prolonged macroeconomic challenges. While its second-quarter earnings of $0.03 per share met analyst estimates and revenue of $138.1 million was slightly ahead of forecasts, investors focused on the bleak forecast. Stratasys cut its full-year 2025 revenue guidance to a range of $550 million to $560 million, significantly below the consensus estimate of $572.5 million. The earnings outlook was also slashed, with the company now expecting adjusted earnings per share of $0.13 to $0.16, less than half the $0.32 analysts had projected. CEO Dr. Yoav Zeif attributed the revision to "prolonged macroeconomic uncertainty and restrained customer capital spending," noting that an expected recovery is taking longer than anticipated.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Stratasys? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Stratasys’s shares are very volatile and have had 24 moves greater than 5% over the last year. But moves this big are rare even for Stratasys and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 3.8% on the news that an in-line inflation report fueled hopes for interest rate cuts and the U.S. and China agreed to extend their tariff truce. The Consumer Price Index (CPI), a key measure of inflation, came in largely as expected, holding steady at 2.7% year-over-year. This reading boosted investor optimism that the Federal Reserve will have room to lower interest rates at its next meeting, which could reduce borrowing costs for companies and consumers. Adding to the positive sentiment, the U.S. and China extended their tariff truce for another 90 days. This development alleviates concerns about renewed trade tensions, which is a significant relief for industrial companies reliant on global supply chains and international sales. Together, these events create a favorable outlook for economic growth, benefiting cyclical sectors like industrials.
Stratasys is up 12.3% since the beginning of the year, but at $9.77 per share, it is still trading 24% below its 52-week high of $12.85 from February 2025. Investors who bought $1,000 worth of Stratasys’s shares 5 years ago would now be looking at an investment worth $641.50.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.