Stock Market Today, April 20: USA Rare Earth Surges After Announcing $2.8 Billion Serra Verde Acquisition
USA Rare Earth (NASDAQ:USAR), a U.S. rare-earth and critical minerals supplier, closed Monday at $22.58, up 13.18%. The stock is rallying after announcing a $2.8 billion acquisition of Serra Verde that expands its mine-to-magnet footprint. Investors are watching for execution on the company’s enlarged rare-earth portfolio and its targeted 2030 EBITDA of $1.8 billion. Trading volume reached 42.7 million shares, about 118% above its three-month average of 19.6 million shares. USA Rare Earth IPO'd in 2025 and has grown 22% since going public.
How the markets moved today
The S&P 500 slipped 0.22% to finish Monday at 7,110, while the Nasdaq Composite declined 0.26% to close at 24,404. Among other industrial metals & mining names, industry peers MP Materials closed at $66.23, up 8.59%, and Lithium Americas finished at $4.98, up 2.89%, as rare-earth supply-chain themes drew interest.
What this means for investors
USA Rare Earth acquired Serra Verde today for $300 million in cash and roughly $2.5 billion in stock, and the market loved the news. USAR management stated that the deal “accelerates USAR’s fully-integrated mine-to-magnet value chain, creating a global leader with best-in-class capabilities across mining, processing, separation, metallization, and magnet making.”
CEO Barbara Humpton explained that Serra Verde is “the only producer outside Asia capable of supplying all four magnetic rare-earth (neodymium, praseodymium, dysprosium, and terbium) at scale.” The company believes it can generate $1.8 billion in EBITDA by 2030, but the stock remains a high-risk, high-reward investment that only began generating revenue last quarter.
Should you buy stock in USA Rare Earth right now?
Before you buy stock in USA Rare Earth, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and USA Rare Earth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $524,786!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,236,406!*
Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 20, 2026.
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.
Recommended Articles
