i'm not concerned about this with stratasys.e watched these management teams come together, and i think objet has a conservative management team, as a matter of fact, certainly relative to anything else in the industry. especially 3-d systems, which i agree, growth by acquisition in that case i'm a little suspicious of. it's like putting a bunch of operating systems together. >> cathie wood. portfolio manager, ark investment management. i went to a voxeljet factory just outside of detroit. i want to show you what i found. the idea of 3-d printing excites the imagination. on-demand products from guitars to guns, sexy dresses, fully functional cars, the holy grail of 3-d printers are at opposite ends of the spectrum. on one side, you have the small printer, the desk-top printer, the laserjet-sized printer that can even go up in the space shuttle. on the other side of the spectrum, you have got the huge format printers that can make things like jet turbine or the hood of a car. a german company called voxeljet is going after that g

stratasys is one of her largest holdings at her fund. >> makerbot was more about a segmentation strategy focusing on the consumer end. but that's not the main story here. makerbot next year will probably be less than 10% of the revenues. the real story here is industrial. as these stocks have been going down for the past year, what we have witnessed is analysts and researchers have been raising their estimates of industrial 3-d printing for the next three, to five, to 10 years. they have gone from $8 billion to $12 billion. we have mckenzie out there who thinks in 10 years to 20 years this will be a $180 billion to $500 billion industry. up from 4.5 billion right now. stratasys is the leader in this space, we think it's a visionary, and we think it has a long way to go. >> so you have some predictions

why wouldn't that happened at some other company other than stratasys ?s it think it's going to be the company leading that business right now? >> i would like to emphasize -- it is in the fourth quarter, if you take out maker bought -- makerbot the revenue was 49%. that's a pretty good growth rate for the part of the business we think really matters going forward. i think they are already innovating, and one of the reasons the stock is down is because they are investing against a bigger opportunity than they had expected was going to happen. we are happy they are doing that. most of their analysts are not happy. we invested in many cavities where they chosen to invest against a huge opportunity. and we have done it to some success. >> when i look at these businesses, i want to look at them for technological aspects. i can't look at -- i can't help but look at the accounting of both stratasys three systems, and other. i went to a factory that was open, there was nothing there. i looked at 3-d systems acquiring the service bureaus to myself -- to whom they

stratasys. want to shorten up my swing a little bit, not go after as much beta as i did with this one. this was a high risk trade and i thought that perhaps one of the other box makers might go after them and decide 3d printing really is the future. they're making that mohawk for katy perry, but nope, not going to work out and that's true. she announced that per her tour. >> stratasys looks like the kid from the nationwide commercial. i think this is like one of those things where it could happen to any one of us. we pick five stocks, it's each one is 20% of our portfolio. any one of these companies at any time could have a nasty surprise. obviously the higher up you go on the size scale, the less likely that is, but still, i feel for you, brother. >> oh, thank you, josh. it is the nature of the competition. >> without a doubt. >> saying that i didn't deserve it, i did deserve it. >> we got you. >> picked high beta when i shouldn't have. i like it overall the way the competition is set up. i'm g

said if i had the guts which i -- basically had to dial my guts because of the horrible call in stratasys i would have got out of that and bought this one three days ago. it would have been the right trade. see if it would have been the right trade after the bell tonight. i'm still worried what the numbers might be. they're pricing in nearly a 12% move afterhours tonight. that's a big move, judge. obviously dick's job is on the line here because if it's not a good report, i know he's on the air tomorrow, if it's not a good report i don't believe he survives a month in twitter, so i think this really is make it or break it for mr. costolo. >> is it that? are we overstating it? >> nor nor the company, for costolo people gag to give the benefit of the doubt to the ceos the founder unless he's playing air guitar like the guy from groupon did. i think that it's still touches so many people, i don't own it because the valuations and they have not shown me they can capitalize on a revenue stream. i'm saying on the sideline because at this point risk/reward is evenly balanced going to the close.

. >> you're short stratasys for one of the ideas you're mentioning. but drill down more on microsoft. the stock has underperformed this year relative to what the nasdaq has done. ceo maybe the bloom is off the rose, now what are you going to deliver here forward? why do you like the microsoft story? >> for us, again, cash flow generation is key. we like to see a lot of cash relative to the overall value of the enterprise. we like to see efficiency, high inventory turns. we like to see strong capital allocation skills. and with microsoft, you're getting all of that, a good quality business for reasonable valuations which is very important. >> will they do m&a this year? will this be the big year where they do a deal to accelerate their cloud, maybe they buy incurva. >> you're hoping for that. >> they have the cash. >> sure. >> joe, cisco. >> yes. >> maybe new life. >> yeah. >> after the most recent earnings, right? chambers the ceo says we're back with a vengeance. >> yes. >> you like the stock? >> i do. i like the stock. the stock down over 1% today.

let's move to sports, when marshawn doesn't get the ball and toss into the scrum, you're doing a stratasysdisaster. this is one of those situations where there's a write-down, jpmorgan, citi piper, the preferred. now i backed away from the group because hewlett-packard's coming in. and i had gone to see the hp 3-d. these companies are secondary players once hp comes in. maker bot, everybody thought terrific. but they had the wrong product, wrong time, price competition, 3-d systems going down too. this moment captured the fancy of america because if you go to youtube, you see 3-d, it's very exciting. i went to see hewlett-packard's 3-d, they made a bobblehead, it was better than the actual bobblehead better than i am. cramer said something right. but i do think that you can't even get in here. >> but it does -- does it make you question the legitimacy of the market or just the stock? >> this -- i think that it's very real. but i think that there are new versions coming out all the time and this is a built in on sole less lens. hp a 2016 issue. that's going to freeze the market. you're not