Not if it is accompanied by an increase in the number of revenue streams which is clearly what Avi is trying to achieve by investing in R&D to open new markets and diversify income.
Infact, in a fledgling industry margin compression could be seen as an impetus for continued innovation as well as a barrier to entry to new companies as they will have less money to compete with behemoths like DDD.
I disagree. This whole downgrade thing is a scam to get people to panic sell. Bank of America-Merrill Lynch is probably buying more shares as we speak. A downgrade is normally for companies with bad financials. But DDD is very healty financially.