Short sellers target US rare earth stocks despite government backing

Rising short interest across MP, USAR, REalloys due to China flood risk and execution skepticism. Contrarian signal: policy tailwinds vs overvaluation. USAR Q2 double miss (revenue $5.82M vs $8.05M, EPS -$0.15 vs -$0.13) and stock drop 9.4% after-hours reinforce execution skepticism. Yet stock up 62% YTD—market pricing in Round Top traction and $1.75B cash. Zacks Hold rating aligns with caution.