Why USA Rare Earth Stock Gave Up Some Gains Today

Core Viewpoint - Investors are increasingly skeptical about USA Rare Earth's potential to secure government subsidies, especially in comparison to its competitor MP Materials, which has established operations and partnerships [1][6]. Company Comparison - USA Rare Earth has not generated any revenue, while MP Materials reported over $200 million in revenue last year, with expectations of 30% growth this year and nearly doubling revenue by 2026 [4]. - MP Materials has active mining operations and a refining business, whereas USA Rare Earth lacks these capabilities and is projected to start generating revenue only in 2026 [4][5]. Profitability Outlook - Analysts predict that USA Rare Earth may not achieve adjusted profits until 2028, with no clear timeline for when it might earn a GAAP profit [5]. - In contrast, MP Materials has secured a 10-year deal with the Pentagon and a $500 million partnership with Apple, highlighting its strong market position [6].