MP Materials Stock Skyrockets Again: The Hidden Catalyst Driving the Rally

Another week, another surge—MP Materials shares are defying gravity while analysts scramble to justify the momentum.

The rare earth play no one saw coming

Forget lithium—this under-the-radar materials stock keeps printing gains while 'smarter' portfolios miss the boat.

Wall Street's whiplash

Short sellers got steamrolled (again) as institutional FOMO overpowered bearish whispers about demand cycles.

One hedge fund manager muttered 'irrational exuberance' between sips of his $28 artisanal cold brew—right before doubling his position.

MP Materials earnings

Investors will likely warm to the earnings report. The company reported an 84% revenue increase and a decreased loss, with adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) coming in with a $12.5 million loss compared to a $27 million loss in the same period of 2024.

It's a good result under the circumstances because of the "strategic decision to cease shipments of rare earth concentrate to China as well as by the ramp-up in midstream operations."

China is, for now, the dominant player in global rare-earth magnet production, and MP Materials previously sold rare-earth materials to a Chinese customer.

However, a massive increase in its neodymium and praseodymium (NdPr) oxide revenue led to a 20% increase in materials sales to $37.5 million, and MP Materials' sales of its rare-earth magnets contributed $19.9 million in revenue.

Image source: Getty Images.

Where next for MP Materials

The results are relatively good, as the market anticipated some near-term pain (from losing its revenue to China). Still, the real long-term story here lies in its transformative deals with the Department of Defense and.

These deals will transform MP Materials into a key part of ensuring the U.S. has a domestic supply of critical rare-earth materials and magnets in the future.