Jim Cramer on MP Materials: “It is Worth More Than it’s Selling For”

MP Materials Corp. (NYSE:MP) is one of the stocks Jim Cramer commented on. A caller mentioned holding 500 shares of MP on margin and expressed interest in adding more. In response, Cramer commented:

“Okay, first, I want you to do well. I want you to get off margin. MP Materials, I don’t want you to buy more with margin. I like, I think the stock, the company has convinced me, Litinsky has convinced, the CEO, that it is worth more than it’s selling for. I had been a little bit worried because it had doubled. I think you’re fine, but don’t, please don’t buy anymore. You’re fine with what you have.”

A stock market data. Photo by Alesia Kozik on Pexels

MP Materials Corp. (NYSE:MP) produces rare earth materials through its Mountain Pass mine and processing facility and manufactures magnetic precursor products to support advanced technologies. In a July episode, when a caller asked Cramer how he sees the stock over the long term, he replied:

“But they’ve got tons of EBITDA. No, look, I mean, the stock has moved to 61. Now, I have done more work on it, and I really think that I was a little, you know, I wasn’t negative, but I think there’s even more upside, and I think you’re onto something really big.”

While we acknowledge the risk and potential of MP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.