Latest news with #Department of Defense
Globe and Mail
3 days ago
- Business
- Globe and Mail
MP Materials Stock: Bull vs. Bear
Key Points The Department of Defense and Apple deals are great news, but what happens next? Trying to time the pullback in MP Materials stock is better left to the fortunetellers -- not smart investors. 10 stocks we like better than MP Materials › Skyrocketing more than 275% since the start of the year (as of this writing), shares of MP Materials (NYSE: MP) have benefited from strong investor interest in rare earth metals and magnets. But could the stock continue its exceptional performance throughout the remainder of the year and beyond? Let's see how two contributors tackle this question. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » It might be time to take some profits with this high-flying stock Lee Samaha: Shares in MP Materials have had a tremendous run in 2025, trading up more than 270% year to date at the time of this writing. The incredible increase is due to a fundamental reframing of the company's growth prospects in light of the Trump administration's determination to ensure a domestic supply of rare earth materials and magnets. It has culminated in a 10-year deal with the Department of Defense (DOD), explained in detail here. In addition, the company has signed an agreement with Apple that investors can look forward to. Still, as ever in investing, the question remains: With these events somewhat priced in, what happens next? The bulls will argue that more deals will be forthcoming now that the DOD's commitment has derisked MP Materials' planned investment in the magnetic manufacturing facility (called the 10X Facility) and the expansion of its rare earth capability. They may well be right. However, the flip side is that MP Materials now needs to execute on constructing facilities, which means incurring execution risk and securing $1 billion in financing from JPMorgan and Goldman Sachs before the 10X Facility begins commissioning in 2028. As such, it might make sense to, at the least, book some profits here. Most of the good news may already be priced in the stock, there's execution risk and the possibility of dilution (the DOD could own 15% of the company as part of the deal), and there's no guarantee that new sources of rare earth materials won't come to the market in the meantime. These blockbuster deals may be harbingers of what's to come Scott Levine: You don't have to scour Warren Buffett's annual letters to shareholders to gain investing insights (although it's not a bad idea). There are some frequent nuggets of wisdom that investors will hear from diverse sources, one of the most common being that it's impossible to time the market. And this old adage is especially applicable to MP Materials right now. With the stock's recent meteoric rise, it's reasonable to speculate that shares will level off at some point and probably even pull back some. The exact timing of when this will happen, of course, remains unknown. For current shareholders, the better course of action is to sit pat -- maybe add to your position if there's a pullback. Those eager to initiate a position should recognize that there's the potential that the stock will rise considerably higher and then trade a little lower only to rise again, leaving them with price points higher than where the stock is trading now. While the Department of Defense deal has numerous benefits for MP Materials, the partnership with Apple is especially important because it demonstrates the pressing need for rare earths, which are essential in the manufacturing of everything from consumer electronics to healthcare technologies to aerospace and defense applications. Companies involved in the manufacturing of these products, moreover, will want to shore up their supplies of rare earths and the magnets made with them. As the only fully integrated rare earth materials producer in the U.S. -- and soon producer of rare earth magnets -- MP Materials has a significant competitive advantage over the limited number of U.S. rare earth producers. Is now a good time to buy MP Materials? Valid arguments can be made on both sides of the coin with respect to whether MP Materials is a buy now. For those who have benefited from the stock's rapid rise over the past few months, trimming their positions and reallocating the capital may be a smart move. On the other hand, the stock has tremendous potential to rise higher in the future, and trying to time the stock's future dip may be a foolhardy exercise. Investors should closely examine risk tolerances and decide if they can withstand future volatility before picking up shares now. Should you invest $1,000 in MP Materials right now? Before you buy stock in MP Materials, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MP Materials wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Yahoo
4 days ago
- Business
- Yahoo
Here's Why MP Materials Blasted Higher Again This Week
Key Points The necessity to secure a reliable domestic supply of rare earth materials is driving MP Materials stock higher. A deal with Apple followed a landmark agreement with the Department of Defense. 10 stocks we like better than MP Materials › Shares in rare-earth materials and magnets company MP Materials (NYSE: MP) blasted higher by 33.6% in the week to Friday morning. Why MP Materials surged again this week It's not hard to see why the stock has surged this year. The ongoing need to secure domestic provision of rare earths and the growing trade conflict with China (the country produces about 70% of global rare-earth elements) is driving the U.S. administration, via the Department of Defense, to enter into a partnership with MP Materials. The $400 million investment in stock from the DOD, a $150 million loan, and an agreement to ensure the purchase of magnets produced from a facility that MP Materials will build with the help of committed financing, provide substantive backing to the company's growth plans. But that was last week. On Tuesday, MP Materials announced an agreement with Apple, whereby it will pay $500 million (with $200 million prepaid) for rare-earth magnets under a long-term supply agreement. The magnets will be produced at a facility in Texas that MP Materials will expand. The news sent the stock racing higher, and a public offering of stock worth $500 million on Wednesday received such interest that management raised it to $650 million the next day. This is a company on a roll, but substantive execution and political risk remain over the long term. Should you buy stock in MP Materials right now? Before you buy stock in MP Materials, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and MP Materials wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Here's Why MP Materials Blasted Higher Again This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
MP Materials commences $500 million public offering of common stock
(Reuters) -MP Materials said on Wednesday it would sell $500 million of its common stock, a day after the U.S. rare earths miner inked a supply deal with Apple. Shares of MP Materials fell 5.8% in extended trade. They have surged 275% so far this year, giving the company a market value of $9.57 billion. The $500 million agreement with Apple is a coup for MP and a rare investment by a tech company aiming to reduce its supply risks for rare earth magnets. The Las Vegas-based company also signed a multibillion-dollar agreement with the U.S. Department of Defense last week as the government seeks to reduce its reliance on China, which restricted rare earths exports in April in response to President Donald Trump's tariffs. Though the U.S. and China reached a deal in June that has resolved much of the rare earths dispute, broader trade tensions continue to underscore demand for non-Chinese supply. The Pentagon deal did not require MP Materials to issue stock for the general public. MP said it intends to use net proceeds from the offering to fund growth opportunities and for general corporate purposes. The company said it would grant underwriters a 30-day option to purchase up to an additional 15% of its shares. J.P. Morgan and Goldman Sachs are acting as lead joint book-running managers in the stock sale, while Morgan Stanley is another book-running manager. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
MP Materials commences $500 million public offering of common stock
(Reuters) -MP Materials said on Wednesday it would sell $500 million of its common stock, a day after the U.S. rare earths miner inked a supply deal with Apple. Shares of MP Materials fell 5.8% in extended trade. They have surged 275% so far this year, giving the company a market value of $9.57 billion. The $500 million agreement with Apple is a coup for MP and a rare investment by a tech company aiming to reduce its supply risks for rare earth magnets. The Las Vegas-based company also signed a multibillion-dollar agreement with the U.S. Department of Defense last week as the government seeks to reduce its reliance on China, which restricted rare earths exports in April in response to President Donald Trump's tariffs. Though the U.S. and China reached a deal in June that has resolved much of the rare earths dispute, broader trade tensions continue to underscore demand for non-Chinese supply. The Pentagon deal did not require MP Materials to issue stock for the general public. MP said it intends to use net proceeds from the offering to fund growth opportunities and for general corporate purposes. The company said it would grant underwriters a 30-day option to purchase up to an additional 15% of its shares. J.P. Morgan and Goldman Sachs are acting as lead joint book-running managers in the stock sale, while Morgan Stanley is another book-running manager. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Business
- Reuters
MP Materials commences $500 million public offering of common stock
July 16 (Reuters) - MP Materials (MP.N), opens new tab said on Wednesday it would sell $500 million of its common stock, a day after the U.S. rare earths miner inked a supply deal with Apple (AAPL.O), opens new tab. Shares of MP Materials fell 5.8% in extended trade. They have surged 275% so far this year, giving the company a market value of $9.57 billion. The $500 million agreement with Apple is a coup for MP and a rare investment by a tech company aiming to reduce its supply risks for rare earth magnets. The Las Vegas-based company also signed a multibillion-dollar agreement with the U.S. Department of Defense last week as the government seeks to reduce its reliance on China, which restricted rare earths exports in April in response to President Donald Trump's tariffs. Though the U.S. and China reached a deal in June that has resolved much of the rare earths dispute, broader trade tensions continue to underscore demand for non-Chinese supply. The Pentagon deal did not require MP Materials to issue stock for the general public. MP said it intends to use net proceeds from the offering to fund growth opportunities and for general corporate purposes. The company said it would grant underwriters a 30-day option to purchase up to an additional 15% of its shares. J.P. Morgan and Goldman Sachs are acting as lead joint book-running managers in the stock sale, while Morgan Stanley is another book-running manager.
