What's Going On With Velo3D Stock?
Velo3D, Inc. (NASDAQ: VELO) shares dropped sharply Tuesday morning despite announcing a new contract from a U.S. Defense prime contractor.
- Velo3D shares are retreating from recent levels. Why is VELO stock falling?
Velo3D Announces Full Rate Production Contract
Velo3D on Tuesday announced it was awarded an $11.5 million multi-year full rate production contract from a key U.S. defense contractor, in support of a high-profile national security program.
The contract leverages Velo3D’s Rapid Production Solution (RPS) and industrial-scale Laser Powder Bed Fusion (LPBF) printing capability to produce high-performance, critical components quickly and at a lower cost than the same components produced using traditional subtractive manufacturing methods.
“Velo3D is absolutely honored to continue supporting key industry partners delivering critical programs that strengthen our national security,” said Arun Jeldi, CEO of Velo3D.
“This multi-year full rate production contract signals the trust and confidence our customers have in Velo3D to scale programs rapidly through faster part delivery, enhanced reliability and the surge capacity needed to meet evolving demands of their customers.”
The news comes after the U.S. Army Ground Vehicle Systems Center (GVSC) recently tapped Velo3D as the first qualified 3D-printing vendor in order to accelerate additive manufacturing for ground vehicles. This collaboration aims to enhance the production capabilities and technological advancements in 3D printing, which are critical for modernizing military equipment and boosting national security.
Despite these positive developments, the market’s current sentiment towards tech stocks has led to increased volatility. The significant short interest of around 20.5% in Velo3D is also likely contributing to the recent volatility in shares.
VELO Stock Dips Despite Positive Partnership News
VELO Price Action: Velo3D shares were down 13.79% at $9.63 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Intel CEO: CPU only meets 50% of demand, 14A to start production in Q1 next year, new architecture may reduce inference power consumption to 1/15 of GPU
Intel CEO Pat Gelsinger stated that the era of AI agents has triggered an explosion in CPU demand, and Intel is currently able to meet only about 50% of its customers' supply needs, with several tech giant CEOs calling to secure supply. In terms of manufacturing process, the 18A node is now in full mass production, while the 14A node will begin production in the first quarter of next year. By opening up factory data, yield rates are improving by about 7% annually. Additionally, he is advancing neuromorphic computing to address energy consumption bottlenecks and expects quantum computing to have a substantial industrial impact within 3 to 5 years.
Reportedly, the US urges Japan to "increase" defense spending; Tokyo considers a 3.5% GDP target, bond market and yen come under pressure first
Under pressure from the United States, Japan is considering setting a new medium-term defense spending target, planning to increase its defense expenditure to 3.5% of GDP to align with NATO and other U.S. allies.
The logic of "cheap yen financing" is changing! Funds are reallocating "carry trades" as Swiss franc and Swedish krona compete for the funding currency position
The appeal of yen financing has diminished, and carry traders have recently turned their attention to the franc and the krona. With the yen’s recent surge making it a less reliable investment option, currencies such as the Swedish krona and Swiss franc are becoming primary funding choices for carry trades.
Crypto prices
More
