Why MP Materials Corp. (MP) Went Down On Tuesday

We recently published a list of 10 Stocks Got Wiped Out. Are You Holding Any? In this article, we are going to take a look at where MP Materials Corp. (NYSE:MP) stands against other worst-performing stocks.

MP Materials dropped its share prices by 4.67 percent to finish at $18.77 as investors disposed of positions to flock to higher-yielding stocks such as nuclear and AI amid promising growth prospects for the said industries.

In the first three months of the year, MP Materials Corp. (NYSE:MP) swung to a net loss of $22.6 million from a net income of $16.5 million in the same period last year, primarily due to a $46.3 million non-cash gain in the first quarter of 2024 associated with the early extinguishment of a portion of convertible notes due in 2026.

Revenues, however, were higher by 25 percent to $60.8 million from $48.68 million year-on-year, primarily driven by higher production of separated products, resulting in a greater mix of NdPr oxide and metal revenue in the current period.

A close up of an essential mineral being extracted from a large rock wall.

MP Materials Corp. (NYSE:MP) is the only fully integrated rare earth producer in the United States, with capabilities spanning the entire supply chain—from mining and processing to advanced metallization and magnet manufacturing.

Overall, MP ranks 6th on our list of worst-performing stocks. While we acknowledge the potential of MP, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MP and that has 10,000x 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.