MP - Why MP Materials Stock Rocketed 35% in December
Shares of rare-earth metal miner MP Materials (NYSE: MP) rose a dramatic 35% in December according to data from S&P Global Market Intelligence . But that ending number wasn't the full story, given that at one point in the month the stock was higher by roughly 80%.
In fact, looking at the bigger picture, and as hard as it may be to believe, that 35% gain is almost a bad thing since it represents a 25% drop from the monthly high. But even that's not a full view of what's going on here.
MP Materials produces rare-earth metals, which are key components in the magnets used in electric vehicles (EVs). That's the big story behind the stock, with the company projecting an over 30% compound annual growth rate in the market for EV motor magnets over the next decade or so. But while the company has been around for a while, it only came public in mid-November. So some of the early rise here is likely being driven by the newness of the stock.
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Why MP Materials Stock Rocketed 35% in December