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to minors. So, although marijuana remains illegal, the U.S.
government seems to be taking a hands-off approach in
states like Colorado. That doesn’t mean it’s making it easy
for companies selling marijuana, however. These businesses
are struggling to obtain loans or do banking transactions
of any sort, as banks are simply too afraid to get involved.
3-D Printing: Making Its Mark
Cutting-edge technological trends have always been front
and center with younger investors. Over the past few
years, we’ve seen a resurgence of interest in 3-D printing.
Numerous publications have highlighted the practically
limitless applications of the technology, which is already
being used to manufacture specialized products across a
variety of industries. As the technology becomes more
refined, with broader applications, it’s not impossible to
envision millions of people acquiring 3-D printers for
personal use. Prices for some of the more basic models
have dropped to under $500, placing them within reach
of average consumers.
The market for 3-D printing is relatively small, accounting
for only $2.6 billion in revenue in 2013, according to
research from Wohlers Associates and Citigroup (see
Figure 2). Although the industry is projected to more than
double in size to $6.5 billion by 2019, the investment
opportunity set is rather limited. Valuations for market
leaders 3D Systems (DDD) and Stratasys Inc. (SSYS) have
become astronomically high given the run-up in stock prices.
Investors have exceedingly high growth expectations priced
into these companies.
The problem with any rapidly growing industry is that
success will breed competition. Several key patents are set to
expire in 2014, opening doors to international competition
from China on lower-end models. Domestically, 2-D
printing powerhouse Hewlett Packard (HPQ) is planning
to enter the space in 2014. As more companies throw their
hats into the ring, valuations are likely to return to a more
reasonable level.
Social Media: Plenty to Like
With its explosive growth over the past several years,
social media has surpassed the fad stage and become a
staple in our daily lives. A recent study by eMarketer.com
1
estimates that nearly one in four people worldwide use
social media, with Facebook tallying more than 1 billion
active users. As you can see in Figure 3, although social
media use skews toward the younger generation, individuals
of all ages have joined the trend.
$0
$1
$2
$3
$4
$5
$6
$7
$8
2009
$1.1 $1.3
$1.7
$2.1
$2.6
$3.1
$3.7
$4.3
$4.9
$5.6
$6.5
2010 2011 2012 2013
3-D Printing Market ($ bil)
2014 2015 2016 2017 2018 2019
Figure 2. Projected Growth in the 3-D Printing Industry
Source: Citi, Wohlers Associates
Source: Pew Research Center’s Internet &
American Life Project,
2005–2013
Feb–05
Aug–06
May–08
Apr–09
May–10
Aug–11
Feb–12
Aug–12
Dec–12
May–13
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
18–29
30–49
All Internet
users
50–64
65+
Figure 3. Social Networking Site Use by Age Group,
2005–2013
1
“Worldwide Social Network Users: 2013 Forecast and Comparative Estimates,” June 18, 2013
