MP Materials (NYSE: MP) has ample long-term growth potential, but can it become a “millionaire maker?” Trading at a nearly $7 billion valuation, the company has grown very far, very fast, making it questionable whether a small investment can grow into a $1 million position.
Yet while MP Materials stock may not make you a millionaire, growth investors may want to consider it a speculative buy, given its potential to make big moves on news about its efforts to further develop its Mountain Pass rare-earth production site in California.
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MP Materials and recent results
While its shares are down 22.7% since January, lately MP Materials has made significant commercialization progress. Back in August, alongside beating expectations with its second-quarter 2026 results, the company also provided bullish commentary on its prospects for processing and selling rare-earth magnets to industrial end users. That is, MP Materials announced plans to make major shipments to General Motors and Apple during Q4 2026 and Q1 2027, respectively.
This is on top of MP Materials successfully scaling up production of Neodymium-Praseodymium (NdPr), the underlying rare-earth metal derived from its Mountain Pass facility. Last quarter, NdPr production totaled 840 metric tons, up 41% year over year, with NdPr sales increasing 127% from the prior-year quarter, to 1,006 metric tons.
The next big move, though perhaps a modest one
Based on its brief post-earnings surge, the next move for MP Materials could be just around the corner. On Nov. 5, MP Materials will report earnings. A big move could happen if results and guidance once again prove promising.
Still, with so much of its future potential value already reflected in its stock market valuation, and forecasts that MP Materials will only hit the billion-dollar sales mark two years out, forget about “millionaire maker.” Even becoming a multibagger stock could prove a stretch.
Moreover, any hiccup in production expansion, or in its GM and Apple rare-earth magnet orders, could cause a new pullback. With this, consider a small speculative position. Even if investors react bullishly to the next earnings release, execution risk will persist.
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool has a disclosure policy.
Is MP Materials Stock a Millionaire Maker? was originally published by The Motley Fool
