Why Shares of 3D Systems Popped Today
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Shares of 3D Systems gained more than 6% on Friday, following news that the 3-D printing pioneer is teaming up with Google's Motorola business to manufacture modules for a fresh generation of customizable smartphones. The stock climbed to $76.50 in afternoon trading, up from a daily low of $72.57.
Source: 3D Systems
Motorola has done little for Google since being purchased by the tech giant in 2011 for a whopping $12.5 billion. This new partnership with 3D Systems could change that, especially if Motorola's new Ara modular phones are a hit. As 3D Systems President and CEO Avi Reichental explained: "3-D printing promotes a level of sustainability, functionality, and mass personalization that turns these kinds of global ambitions into attainable local realities." 3D Systems released details of its multi-year development agreement with Motorola in a press release on Friday. Under the agreement, 3D Systems will create a "high-speed 3D printing production platform and fulfillment system," which will be used to make modular smartphones a reality. It's all part of Motorola's Project Ara, a fluid smartphone concept that lets users snap different components in and out of their devices.
Strategic partnerships such as this one should help 3D Systems grow into its more than $7 billion market cap. Shares of 3D Systems are up more than 102% year to date.
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The article Why Shares of 3D Systems Popped Today originally appeared on Fool.com.
Fool contributor Tamara Rutter has no position in any stocks mentioned. The Motley Fool recommends 3D Systems and Google. The Motley Fool owns shares of 3D Systems and Google and has the following options: short January 2014 $20 puts on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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