What Happened:
Shares of 3D printing company Stratasys (NASDAQ:SSYS) fell 20.7% in the pre-market session after the company reported second-quarter earnings results. Its full-year revenue, EPS, and EBITDA guidance fell short of Wall Street's estimates. Moving on, the company announced plans to restructure its operations, and this effort will result in the elimination of 15% of its workforce. Overall, this was a weaker quarter.
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What is the market telling us:
Stratasys’s shares are somewhat volatile and over the last year have had 16 moves greater than 5%. But moves this big are very rare even for Stratasys and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Stratasys is down 52.9% since the beginning of the year, and at $6.63 per share it is trading 55.3% below its 52-week high of $14.82 from December 2023. Investors who bought $1,000 worth of Stratasys’s shares 5 years ago would now be looking at an investment worth $281.53.
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