Latest news with #MP
Business Insider
an hour ago
- Business
- Business Insider
What's Next for MP Materials Stock (MP) After Apple's Blockbuster Deal?
U.S.-based MP Materials (MP) is back in the investor spotlight after Apple (AAPL) announced a blockbuster deal to invest $500 million in the rare earth firm to strengthen the tech giant's U.S. supply chain. The news sent MP stock soaring nearly 20% on Tuesday, pushing it to a new all-time high. Beyond the excitement of the Apple deal, investors are now questioning whether the rally in MP Materials stock can continue. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Notably, MP Materials owns the only rare earth mine in the U.S., located at Mountain Pass, California, and runs a magnet production facility in Fort Worth, Texas. The company's new venture into recycling may unlock fresh growth potential for investors. Overall, Wall Street analysts have praised MP Materials' recent deal with Apple and remain strongly bullish on the stock. However, given the sharp rally in MP shares this year, they see limited upside in the near term. Year-to-date, MP stock has soared more than 270%. What's Happening with MP Stock? MP Materials stock has surged this year, driven by rising demand for rare earths and strong backing from President Trump's push to boost domestic production and cut U.S. dependence on China. Adding to the momentum, the U.S. Department of Defense recently agreed to take a direct equity stake in MP Materials, making it the company's largest shareholder. Under the latest deal, Apple will purchase rare earth magnets made at MP Materials' plant in Texas. The two companies will also build a new recycling facility in California. MP plans to begin shipping the magnets in 2027. For context, rare earth magnets are used in smartphones, electric vehicles, wind turbines, and defense systems. Wall Street Applauds MP-Apple Deal TD Cowen stated that MP's deal with Apple is a strong example of future growth potential. The firm noted that the deal uses up most of the production capacity at MP's Texas facility. As the company starts recycling rare earth magnets, it will benefit from securing more heavy rare earth elements, which are essential for making powerful magnets. TD Cowen maintains a Buy rating on MP stock with a $55 price target. Likewise, Baird analyst Ben Kallo calls the deal a major new catalyst for MP, following its recent partnership with the U.S. Department of Defense. He notes that Apple will be the first big customer for MP's recycling business, which could grow in importance. The deal happened sooner than expected and is a positive sign for strong magnet demand and full use of MP's production capacity. Is MP Materials a Good Stock to Buy? According to TipRanks, MP stock has received a Strong Buy consensus rating, with six Buys and two Holds assigned in the last three months. The average MP Materials stock price target is $43.17, suggesting a potential downside of 26% from the current level.
Business Insider
5 hours ago
- Business
- Business Insider
MP Materials announces $500M common stock offering
MP Materials (MP) announced that it has commenced a $500M underwritten public offering of its common stock. All shares of common stock to be sold in the offering will be offered by the company. The company currently intends to use the net proceeds from the offering to fund the acceleration and expansion of its operations, including the 10X Facility, for strategic growth opportunities and for general corporate purposes. J.P. Morgan Securities and Goldman Sachs & Co. are acting as lead joint book-running managers of the offering. Morgan Stanley & Co. is also acting as a book-running manager. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Yahoo
20 hours ago
- Business
- Yahoo
Johnson & Johnson outlook, MP Materials surges: Trending Tickers
Johnson & Johnson (JNJ) shares tick higher in pre-market trading after the company raised its full-year earnings and sales guidance, though looming pharmaceutical tariffs from President Trump remain a key risk for the sector. MP Materials (MP) stock jumped after Apple (AAPL) announced a $500 million deal to buy rare earth magnets and build a rare earth recycling facility in California. To watch more expert insights and analysis on the latest market action, check out more Morning Brief: Market Sunrise here. Now some more breaking news on the earnings front, as the pharma sector braces for more clarity on tariffs. Johnson & Johnson reporting earnings this morning, kicking off earnings for the healthcare sector. The company reporting second quarter adjusted EPS of $2.77, but keep, keep part of this release really is the company boosting its full-year sales outlook and boosting its full-year earnings outlook, its profit outlook. So Johnson & Johnson now seeing full year adjusted earnings per share in a range of $10.80 to $10.90, previously it had guided for a range of $10.50 to $10.70. On full-year sales, the company now sees a range of $93 or sorry, $93.2 billion to $93.6 billion, previously it had seen a range of 91 to 91.8. So you're seeing stock slightly higher here up a little bit over 1% on this boosted forecast. But key though for the sector, as we had talked about earlier this morning for Johnson & Johnson, is the fact that pretty soon President Trump has warned that there will be tariffs coming on the pharma sector. So it will be interesting to see of course how those could impact this company, what management says on the call about this about those tariffs and looming risks when it comes to that. Now you might have also heard about MP Materials in recent days. That stock closed 20% higher on Tuesday, and this is another trending ticker that I want to highlight for us. That stock is up about 4.5% in pre-market up almost 4% now. The fresh surge in MP, that's the ticker, comes after Apple announced that it would buy rare earth magnets from the company in a $500 million deal. The deal will sell, we'll see Apple and MP materials launch a recycling facility in California for processing and we'll be keeping a close eye on MP materials over the next several sessions.
Phone Arena
20 hours ago
- Business
- Phone Arena
Apple's latest move is one Trump will probably love
Back when President Donald Trump took office, he called on Apple to start making iPhones in the US. That pressure hasn't let up and earlier this year, Apple responded with a massive pledge – $500 billion to expand its US presence. Fast forward to now, and while iPhones aren't moving stateside, Apple is putting its money into American soil – literally. The Cupertino giant just announced a fresh $500 million commitment with MP Materials, which happens to be the only rare earth producer in the US that handles everything from mining to processing. The multiyear deal means Apple is now locked into buying American-made rare earth magnets, built at MP Materials' Independence facility in Fort Worth, is not all, though. The two companies are also teaming up to build a next-gen rare earth recycling plant out in Mountain Pass, California. On top of that, they will be developing new magnet materials and tech to boost performance. – Tim Cook, Apple's CEO, July 15, 2025 Apple and MP will be decking out the Texas factory with high-end neodymium magnet manufacturing lines, built specifically for Apple gear like iPhones, iPads, and Macs. Once the new systems are up and running, MP Materials is expected to ramp up its total production big time. These US-made magnets will be shipped both across the country and globally, helping meet growing demand for this key material. The first shipments should roll out in 2027, eventually powering hundreds of millions of Apple devices. Inside MP Materials' flagship Independence facility in Fort Worth, Texas. | Image credit – Apple The expansion will also create a bunch of new jobs in advanced manufacturing and research, and Apple and MP plan to train a whole new generation of US talent in magnet manufacturing. As for the new recycling facility in California, it will take in rare earth materials pulled from old electronics and industrial waste, then reprocess them to be used again in Apple products. Apple and MP have been testing out this advanced recycling tech for nearly five years and it's been successful enough to meet Apple's strict performance and design standards. Apple is actually no stranger to recycled rare earths – it was the first to use them in consumer electronics back in 2019 with the iPhone 11's Taptic Engine. Today, nearly all Apple magnets are made using 100% recycled materials. But beyond going green, there's a big geopolitical angle here, too. Rare earth materials are critical for pretty much all modern tech – phones, TVs, electric vehicle batteries, wind turbines, LED lights, you name it. The catch? China dominates the game. While rare earths aren't actually rare (they are found throughout the Earth's crust), they are super hard and expensive to process. China holds the keys to almost all of the equipment needed to process them and currently controls a whopping 92% of the world's rare earth refining. So yeah, this Apple–MP Materials deal isn't just about sourcing locally – it's also a big strategic move. It gives Apple a stronger domestic supply chain and fits in nicely with the company's push to use more recycled materials, a plan it was working on long before Trump stepped in. Still, sourcing these materials in the US might mean slightly higher prices down the road, so future Apple products could cost a bit more, and I bet the company would use this local sourcing as a reason. As for bringing full iPhone manufacturing to the US? Still a long shot. It would mean blowing up the global supply chain that Apple's spent years perfecting. But this rare earth commitment? That's a solid win for American manufacturing and one I believe Trump's definitely going to point to. Secure your connection now at a bargain price! We may earn a commission if you make a purchase Check Out The Offer
Mint
a day ago
- Business
- Mint
Apple signs $500 million deal with MP Materials for rare earth magnets, eyes US supply chain expansion
Apple has signed a $500 million deal with MP Materials for rare earth magnets, mitigating supply risks after China curbed exports this year and representing a major coup for MP that sent its shares soaring by a fifth. The backing from one of the world's most valuable companies comes after MP, which operates the only U.S. rare earths mine, last week agreed to a multibillion-dollar deal with the U.S. Department of Defense that will see the Pentagon become its largest shareholder. The Las Vegas-based company's stock price has nearly doubled since the government deal was announced. It has had remarkable turnaround since last year when it contemplated merging with an Australian rival as profits plunged in what CEO Jim Litinsky called a 'very frustrating' pricing environment for rare earths. The deal, announced on Tuesday, guarantees Apple a steady flow of rare earth magnets free from China - the world's largest producer. For Apple, the cost to support U.S. magnet production pales in comparison to the long-term risk that it could lose access entirely to the critical components, analysts said. "We're in an era where executives are willing to pay a significant premium for a reliable supply chain. They don't want stoppage," said Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies. China placed export restrictions on rare earths in April in response to U.S. President Donald Trump's tariffs. Though the U.S. and China reached a deal in June that has resolved much of the rare earth dispute, broader trade tensions continue to underscore demand for non-Chinese supply. As part of the agreement, Apple will prepay MP $200 million for a supply of magnets slated to begin in 2027. The companies did not disclose the length of the deal nor the volumes of magnets to be provided. The agreement calls for magnets produced from recycled material, in keeping with Apple's long-standing goal of ending its reliance on the mining industry. They will be produced at MP's Fort Worth, Texas, facility using magnets recycled at MP's Mountain Pass, California, mining complex. "Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States," Apple CEO Tim Cook said in a statement. Bob O'Donnell, president at market research firm TECHnalysis Research, said Tuesday's move "makes complete sense" given that Apple requires significant amounts of rare earth magnets for its devices. "Plus, by focusing on a U.S.-based supplier, it does help position Apple more positively in Washington," he said. Apple, which said the deal is part of its $500 billion four-year investment commitment to the U.S., has faced threats from Trump over iPhones not made in the U.S. But many analysts have said making the iPhone in the U.S. is not possible, given labor costs and the existing smartphone supply chain. Apple did not disclose which devices in which it will use the magnets. MP said the deal will supply magnets for hundreds of millions of devices, which would constitute a significant share of any of Apple's product lines. MP produces mined and processed rare earths and has said it expects to start commercial magnet production in its Texas facility by the end of this year. Last week's deal between MP and the U.S. government includes a price floor for rare earths designed to spur investment in domestic mines and processing plants, which has been lagging partly due to low prices set in China. The company also has magnet supply deals with General Motors and Germany's Vacuumschmelze. Rare earths are a group of 17 metals used to make magnets that turn power into motion, including the devices that make cell phones vibrate. They are also used in weapons, electric vehicles and many other electronics.
