DDD is in a great position in a exploding market. They spend a lot of money on R&D...they could acquire this company in a heartbeat as they did Z-Corp and Huntsman in the past. Innovative companies like this help the overall Rapid Prototyping market move forward....DDD and SSYS are the big fish with distribution, service, infrastructure and the the capital ready to make sensible acquisitions. It would be a different story if this was a mature market with slowing growth and new uses were not being found for the technology everyday. It is conceivable that the way this technology is moving forward, we will be printing Clothing, Houses, Body Parts, etc. So there is a lot of room in this market....this is just the very beginning (OR I should say, the "end of the beginning" as the tech has been around for 20 years and now finally hitting the mainstream).
I don't think you get how the stock market works - short term linear news announcements do not indicate market translations. The stock market is the instantaneous auction price of ~100 market participants at any point in time - it can go in any direction for any reason.
For the vast majority of the time the stock market is stable until such a time as a whale moves markets and the feedback loop begins.
While I understand the gist your comment, you probably didn't read the link. This is exactly how the market works: traders don't have time to follow closely all the markets of all companies they are trading, so they will eat whatever canned news they get -- provided it came from a reputable source.
So when JP Morgan issues a memo saying "Formlabs ... could be a threat to incumbent 3D printer solutions at the low-end of the market in the near-term... First take: potential negative for DDD" - and in the exact same week that Wired published a cover page with Bre Pettis and his good-looking MakerBot Replicator 2... well, maybe it's time to lock in the 110% gains you had this year with DDD and move on...