Materialise Stock Crashes 35% – Buying Opportunity or Falling Knife?

Materialise (MTLS), the Belgian 3D-printing specialist, suffered a massive 35% drop in its stock price after disappointing Q4 earnings. Investors are now left wondering: is this a golden buying opportunity, or is the stock set for more pain?

In this article, we analyze both long-term investment potential and short-term swing trading opportunities based on fundamentals and technical signals.

Daily and weekly chart

Challenges and Opportunities: Is Materialise a Buy for the long-Term Investor?

Materialise faces significant challenges, including weak fundamentals, as the company reported disappointing Q4 results with lower-than-expected revenue and profitability, while the macroeconomic outlook for 2025 remains tough.

The persistent downtrend since 2021, with only brief recoveries, further adds to concerns, and overhead resistance in the $7-$8 range could limit upside potential.

However, there are some reasons to consider buying, particularly the strong performance of the medical division, which continues to show solid revenue growth despite weaknesses in the industrial segment.

Additionally, the sharp 35% drop may have been an overreaction, potentially creating an oversold opportunity if the stock stabilizes.

Verdict for Long-Term Investors:

At this moment, Materialise does not look like a strong long-term buy. The stock is in a long-term downtrend, and its fundamentals remain weak. A more attractive buying opportunity could arise if the company stabilizes and shows signs of recovery.

Swing Traders: A Short-Term Opportunity?

For traders looking to capitalize on volatility, Materialise’s big drop may present a short-term trading opportunity.

Materialise presents significant risks for swing traders, as the extreme downward momentum from a single-day 35% drop on high volume signals strong selling pressure, and the break below key support increases the likelihood of further downside.

That said, the stock could offer a short-term trading opportunity if it stabilizes, as the steep decline may trigger an oversold bounce, creating a potential swing trade setup. Additionally, the high selling volume could indicate capitulation, a signal that often precedes short-term bottoms and possible rebounds.

Verdict for Swing Traders:

Materialise could offer a high-risk, short-term bounce trade, but only if it stabilizes and forms a clear reversal candlestick. Tight stop-loss management is essential.