Velo3D, Inc. (VELO) stock extended its rally overnight on Thursday, following four straight sessions in the green, with a 34% surge on Thursday positioning the stock toward its best week of the year. Investors rotated into advanced manufacturing names tied to the expanding space economy ahead of the SpaceX IPO. Market attention has shifted toward the public debut of Elon Musk's SpaceX, set to trade under the ticker SPCX at a valuation near $1.77 trillion, with IPO shares tightly allocated and difficult for most investors to access, triggering a wave of indirect positioning in liquid alternatives linked to the same value chain.
SpaceX IPO Drives Indirect Positioning in Velo3D Stock
The SpaceX listing has triggered a wave of indirect positioning as traders seek liquid alternatives linked to the same value chain. That spillover has landed on Velo3D as traders seek exposure to the broader launch and manufacturing cycle.
SpaceX Uses Velo3D Sapphire Printers for Rocket Components
Velo3D's appeal stems from its specialized metal 3D-printing systems used to produce complex aerospace components, including parts for next-generation rocket engines. Its manufacturing capabilities are viewed as critical to enabling high-performance propulsion systems that require precision geometries and advanced materials processing.
SpaceX uses Velo3D's Sapphire printers to help make highly complex metal parts for rockets, including components like the Raptor 3 engine. In 2024, SpaceX signed an $8 million deal with Velo3D for intellectual property and services, allowing it to use and adapt the company's 3D printing technology for its own space programs.
Velo3D Reports 48% Revenue Growth and 70% Debt Reduction
Velo3D has overcome the financial difficulties that previously clouded its outlook. The company's recovery gained momentum following fiscal first-quarter results that highlighted 48% revenue growth, a positive gross margin of 17.2% and substantial debt reduction.
Through debt-to-equity transactions and a capital raise completed earlier this year, Velo3D cut its outstanding debt by approximately 70%, leaving only about $9 million in remaining obligations.
On Thursday, VELO appointed former Fremont Mayor Lily Mei as an independent member of its Board of Directors. In addition to expanding its space operations, the company has expanded its production services for defense and energy infrastructure to diversify revenue streams.
Retail Traders Express Bullish Sentiment on Velo3D Stock
On Stocktwits, retail sentiment around the stock remained 'extremely bullish' with a 302% jump in message volume in 24 hours.
A user said, "[$VELO] let her rip!!!! I knew this was gonna explode when I bought 10,000 shares @$5 last November when [CEO] Arun [Jeldi] took this company around and we heard whispers of SpaceX and Anduril being customers! Have not sold anything! But this is what happens when you do your DD and believe in company mgmt! LONG!!!"
Another user said, "Look at all the shawties coming out of the woodwork. They're either shorting it, or they sold to lock in profits and now they want it to dump so they can buy again."
VELO stock has rocketed over 122% year-to-date.
FAQ
What caused Velo3D stock to surge on Thursday?
Velo3D stock surged 34% on Thursday as investors rotated into advanced manufacturing names tied to the expanding space economy ahead of the SpaceX IPO. The SpaceX listing triggered indirect positioning in liquid alternatives linked to the same value chain, with spillover landing on Velo3D.
What is Velo3D's relationship with SpaceX?
SpaceX uses Velo3D's Sapphire printers to make highly complex metal parts for rockets, including components like the Raptor 3 engine. In 2024, SpaceX signed an $8 million deal with Velo3D for intellectual property and services, allowing it to use and adapt the company's 3D printing technology for its own space programs.
What were Velo3D's fiscal first-quarter financial results?
Velo3D's fiscal first-quarter results highlighted 48% revenue growth and a positive gross margin of 17.2%. Through debt-to-equity transactions and a capital raise completed earlier this year, the company cut its outstanding debt by approximately 70%, leaving only about $9 million in remaining obligations.
