---
title: "Why Are Velo3D Shares Falling On Thursday?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286449322.md"
description: "Velo3D Inc (NASDAQ: VELO) shares fell 7.04% to $19.53 on Thursday as investors locked in profits after a 50% surge the previous day. The stock's rally followed a strong Q1 earnings report, with a loss of 20 cents per share, beating estimates, and revenue of $13.82 million, up 48% year-over-year. High short interest contributed to volatility, while the company secured significant defense contracts, boosting its backlog to $30 million. Despite the drop, the long-term outlook remains bullish with key resistance at $23.84 and support at $14.11."
datetime: "2026-05-14T17:22:05.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286449322.md)
  - [en](https://longbridge.com/en/news/286449322.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286449322.md)
---

# Why Are Velo3D Shares Falling On Thursday?

**Velo3D Inc** (NASDAQ:VELO) shares are trading lower on Thursday. The retreat follows a massive rally during Wednesday’s session. Investors appear to be locking in profits after a triple-digit run-up over the past six months.

The Nasdaq is up 0.97% while the S&P 500 has gained 0.96%.

**• Velo3D stock is feeling bearish pressure. Why is VELO stock dropping?**

## **Profit-Taking Follows 50% Surge**

The metal additive manufacturing specialist saw its stock skyrocket over 50% on Wednesday. This move came after a strong first-quarter 2026 earnings report. As of Thursday, the stock is seeing a natural cooling period. Market data shows the share price surged 316.74% over the last half-year.

## **Q1 Earnings Top Wall Street Estimates**

Velo3D reported a first-quarter loss of 20 cents per share. This significantly beat analyst estimates of a 48-cent loss. Revenue reached $13.82 million, up 48% year-over-year. This figure easily cleared the Street's expectation of $9.85 million. Management attributed the growth to higher system shipments and strong demand in aerospace and defense.

Management maintained its 2026 revenue guidance of $60 million to $70 million.

## **Short Interest Amplifies Volatility**

High short interest likely acted as a catalyst for Wednesday's jump. Short interest exceeded 25% of the float. This created significant buying pressure as short sellers covered positions. The stock hit $21.38 during the peak of the rally.

## **Defense Contracts Anchor Future Outlook**

The company's backlog rose to $30 million, up from $18 million last year. Velo3D recently secured an $11.5 million contract with a U.S. defense prime. It also signed a $9.8 million deal with the Defense Logistics Agency.

## **Critical Price Levels To Watch For Velo3D**

From a trend perspective, VELO is still extended to the upside: it's trading 39.6% above its 20-day SMA of $14.11 and 54.9% above its 50-day SMA of $12.72, with price also well above the 200-day SMA of $9.65.

RSI is the cleaner momentum lens right now, sitting at 70.98.

The longer-term structure still leans bullish: the 20-day SMA is above the 50-day SMA.

-   **Key Resistance**: $23.84
-   **Key Support**: $14.11

**VELO Stock Price Activity:** Velo3D shares were down 7.04% at $19.53 at the time of publication on Thursday, according to Benzinga Pro data.

**Read Also: What Is A 'C-Shaped' Economy? Wall Street's New Buzzword Explained**

_Photo by Michael Vi via Shutterstock_

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