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
From "higher for longer" to "the new normal for longer": Oil price shocks combined with the AI bond issuance boom, the financial market ushers in the 5% U.S. Treasury yield as the "new normal"
The borrowing costs of governments around the world continue to rise, with investors demanding higher returns to attract them to hold long-term bonds. The increase in US Treasury yields even prompted Treasury Secretary Scott Besant to announce an expansion of long-term Treasury buybacks—but this intervention failed to prevent the 10-year US Treasury yield from surpassing 5%, reaching its highest level in nearly 20 years.
Oil prices and interest rates are rising, but US stocks still trust TACO
Oil prices have surpassed $100, the Federal Reserve is raising interest rates, and tensions in the Strait of Hormuz persist—Wall Street's bet on the "Trump will always back down" TACO trade is facing its most dangerous moment. The unexpected resilience of US stocks has actually reduced Trump's motivation for reconciliation; the real pressure valve lies in bond yields approaching the 4.946% warning line. Behind-the-scenes negotiations are reportedly ongoing, but this time, can the market's patience last until Trump changes course?
Claude leads 26% of R&D, Anthropic raises heated discussion on "AI developing AI" with its "AI slowdown theory"! The RSI training paradigm is catalyzing a major expansion in computing power demand.
Anthropic PBC's Claude chatbot has driven more than a quarter of the company's AI research and development work. The company found that Claude "led" 26% of Anthropic's R&D efforts and collaborated with employees to complete about 90% of the work. Anthropic plans to introduce third-party evaluators within the company and grant them access to internal processes, systems, and data to help track the progress of AI development.
Crypto prices
More
