Here’s Why Shares of Veeco Instruments are Down 16%

Shares of LED and solar equipment maker Veeco Instruments (NASDAQ:VECO) are getting slaughtered after Citigroup downgraded the white hot stock from ‘Buy’ to ‘Hold’. Shorts are really piling on and newbie longs are taking a hike.

Citi says Veeco will be hurt as the Chinese market slows in early 2011. China (NYSE:FXI) is Veeco’s largest customer.

Citi also downgraded Veeco’s competitor Aixtron (NASDAQ:AIXG). AIXG shares are only down 4%.

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Disclosure: No positions.