Velo3D Inc (NASDAQ:VELO) shares are trading lower Thursday as investors weigh a bearish short report from Morpheus Research against a bullish new analyst call from Needham, which initiated coverage on the additive manufacturing company with a Buy rating and $33 price target. Here’s what investors need to know.
Velo3D stock is taking a hit today. What’s pressuring VELO stock?
Morpheus Research Levels ‘Illusion’ Allegations Against Velo3D
The short seller alleged Velo3D’s rally has been driven by an "illusion" tied to overhyped aerospace and defense opportunities, a diminished relationship with SpaceX and questions surrounding CEO Arun Jeldi’s background and business history.
“We believe it’s only a matter of time before investors see Velo3D for what it is: an obvious promotional grift orchestrated by a CEO with a wildly exaggerated resume that appears to be almost completely fabricated, a track record of business blow-ups and litigation, and no experience running a public company,” the short seller wrote.
