Hewlett-Packard Company (NYSE:HPQ) Is Ready To Launch Its 3D Technology- Which Stock Will Suffer The Most?

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By Erik Waters on November 24, 2014 Technology & Software

Hewlett-Packard Company (NYSE:HPQ) was planning on entering into the business of 3D for quite some while, and the company finally made the announcement last month. It is important to mention here that Hewlett-Packard has already established its name in the 2D printing sector. Its latest 3D technology is going by the name of ‘Multi Jet Fusion’. The company recently announced that it plans to launch its technology latest by 2016. Multi Jet Fusion will be focusing on enterprise based 3D printing.

Rumors have it that Hewlett-Packard’s (NYSE:HPQ) printer will be 10 times efficient than the printers of other leading technologies in the 3D sector. The technology also supports high resolution and precision together with bright colors. Not only will HPQ provide better graphics but it will also come cheap than its competitors.

The stocks of 3D printing slid a little on the day of HPQ’s announcement to enter the market of 3D.

So let’s just examine which stocks are likely to go up and which have the tendency to go down once Hewlett-Packard Company (NYSE:HPQ) enters the 3D market. There are 5 publicly traded companies that deal with 3D printing technology. Stratasys (NASDAQ:SSYS) has a market capitalization of $5.3 billion with an annual revenue of $668.1. The next in line is 3D Systems (NYSE:DDD) with a market capitalization of $3.9 billion and an annual revenue of $621 million. Then comes ExOne (NASDAQ:XONE) with a market capitalization of $319 million and an annual revenue of $38.8 million. The last two companies are Arcam (NASDAQ:AMAVF) and VoxelJet (NYSE:VJET) with a market capitalization of $421.1 million and $224.2 million respectively.

Since VoxelJet and 3D Systems generate a large amount of their revenues from the 3D printing plastic segment, these companies are not likely to stand the competition. Hewlett-Packard Company’s (NYSE:HPQ) printer will be plastic based at the start, and the chances are that the company will market those printers directly to the enterprises. So, 3D and VoxelJet are likely to suffer once HPQ enters the market.

We cannot calculate the exact amount of revenues that will be affected by HPQ’s entry, for no company has given much detail in their financial reports.

The companies that print on plastics and are focused on enterprise customers will see a drop in their 3D business once HPQ launches its technology.

The plus point for ExOne and Arcam is that they do not print on plastics. Arcam prints on metals and ExOne’s printers can print on several different materials, which include glass, sand and metals.

Hewlett-Packard Company’s (NYSE:HPQ) printers, at the start, will print on plastics only, but the company plans to enter other material capabilities too, including ceramics and metals.

Coming to the stock prices of Hewlett-Packard Company (NYSE:HPQ), the company, on the last trading day of November 23, 2014, started its stocks at $37.27 and closed at $37.26, after hitting the highest of $37.45. The company has a market capitalization of $69.54 billion and a dividend yield of 1.72 percent.