Jim Cramer Explains Why Velo3D (VELO) Is Only Worth a Quarter Position Right Now

Jim Cramer explained on the September 1 episode of Mad Money why Velo3D Inc. (NASDAQ:VELO) is only worth a quarter position at the moment. During the lightning round, a caller pointed out Velo3D's 52% year-over-year revenue growth, raised guidance, projected second-half positive EBITDA and deep ties to SpaceX and defense primes.

Cramer responded that while Velo3D has impressive technology and contracts, the company's revenue growth has not met his expectations. He suggested waiting for a few more solid quarters before increasing the position beyond a quarter, as the company needs to demonstrate it can reliably turn those impressive contracts into steady cash flow.

Velo3D specializes in building high-end metal 3D printers for complex parts used in rockets, satellites, and defense equipment. The stock is speculative due to its high-tech nature and uneven execution, with a significant short interest of 30.43% of the float, indicating deep skepticism among investors.