Velo3D Shares Jump 34% This Week on SpaceX Proxy Trade
VELO•Velo3D stock surged 34% on Thursday and is set for its best week of the year as investors seek a SpaceX proxy trade. The company reported 48% revenue growth, a 17.2% gross margin and cut debt by 70%, while sustaining an $8 million SpaceX IP services agreement.
1. Stock Rally Fueled by SpaceX IPO Proxy Trading
Velo3D extended its rally with four consecutive positive sessions, driving a 34% gain on Thursday and positioning the stock for its best weekly performance this year. Investor interest has intensified as access to SpaceX IPO shares remains limited, prompting capital flows into companies linked to the space launch supply chain.
2. Q1 Financial Performance and Debt Reduction
In the fiscal first quarter, Velo3D delivered 48% year-over-year revenue growth and achieved a 17.2% gross margin. The company executed debt-for-equity transactions and a capital raise that reduced outstanding debt by roughly 70%, leaving about $9 million in liabilities and bolstering its financial stability.
3. SpaceX Partnership and IP Services Deal
SpaceX relies on Velo3D’s Sapphire metal 3D-printing systems to produce complex rocket components, including parts for the Raptor 3 engine. In 2024, the companies signed an $8 million intellectual property services agreement, solidifying Velo3D’s role in next-generation propulsion manufacturing.
