Why USA Rare Earth Inc. (USAR) Went Down On Thursday?

We recently published a list of Thursday’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where USA Rare Earth Inc. (NASDAQ:USAR) stands against other Thursday’s worst-performing stocks.

Wall Street’s main indices edged lower on Thursday, erasing gains from the previous trading day that was buoyed by the Federal Reserve’s decision to keep rates unchanged.

Among the major indices, the tech-heavy Nasdaq led the drop, losing 0.33 percent. The S&P 500 declined by 0.22 percent, while the Dow Jones dipped by 0.03 percent.

Ten companies, predominantly under the micro- and small-cap sectors also mirrored losses. In this article, we have identified Thursday’s 10 worst performers and detailed the reasons behind their gains.

We classify micro-cap companies as those between $50 million and $300 million in market capitalization and small-cap firms as those between $300 million and $2 billion in market capitalization.

USA Rare Earth Inc. (NASDAQ:USAR)

USA Rare Earth dropped for a second straight day on Thursday, losing 22.66 percent to finish at $12 each as investors booked profits following a surge in its stock price over the past trading days of the week.

The company is a magnet technology company that aims to become a leading domestic supplier of rare earth magnets and elements. It currently operates facilities in Oklahoma, Colorado, and Texas, and mining rights to the Round Top deposit in West Texas.

Just recently, USAR concluded the acquisition of Inflection Point Acquisition Corp. II, a special purpose acquisition company.

“The recent news on tariffs and rising global geopolitical tensions are a wake-up call for America—we must build a domestic rare earth mineral and magnet supply chain here at home to support a wide range of critical technologies, including our national defense,” said USAR CEO Joshua Ballard.

“I’m incredibly proud of this team as the closing of this transaction and our listing on Nasdaq is another key milestone in our evolution in building this supply chain,” he added.

Overall, USAR ranks 6th on our list of Thursday’s worst-performing stocks. While we acknowledge the potential of USAR 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 as promising as USAR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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