Insights

Why is the Novonix share price down 6% on Friday?

Fellow ASX lithium and tech shares are also struggling in afternoon trading today.
The post Why is the Novonix share price down 6% on Friday? appeared first on The Motley Fool Australia. –

The Novonix Ltd (ASX: NVX) share price is down 6.4% today and currently trading at $4.68.

There’s been no news today from the ASX lithium-ion battery developer and graphite miner. However, fellow ASX lithium and tech shares are also struggling in afternoon trading.

In the lithium camp, the Lake Resources NL (ASX: LKE) share price has dipped 7.65% to $1.64. The Liontown Resources Limited (ASX: LTR) share price is down 6.14% to $1.38, while shares in Pilbara Minerals Ltd (ASX: PLS) are shedding 5.48% to $2.68. The Core Lithium Ltd (ASX: CXO) share price has lost 4.98% to $1.24.

The market, in general, is down after a sell-off overnight on US markets. The NASDAQ fell by 5% to its lowest level since November 2020. Of course, the ASX is following the US lead, as it usually does. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is down 4.08% and the S&P/ASX All Ordinaries Index (ASX: XAO) is down 2.36%.

What’s been happening at Novonix lately?

Last week, Novonix reported its quarterly activities and cash flow for the March 2022 quarter. The company reported “continued strong revenue growth” with customer receipts of $2.11 million due to new accounts and the expansion of existing accounts. At the end of the quarter, Novonix had a cash and cash equivalents balance of $211.8 million.

The Novonix share price rallied on the news and went up 2.15% on the day of the report’s release.

Novonix operates in one of the hottest investment sectors of the moment — lithium. It’s a mineral needed for a bunch of popular everyday items, such as iPhones, laptops, medications, and medical devices.

There is also huge global demand for it in the electric vehicle space as many countries prioritise dealing with climate change and reducing their greenhouse gas emissions.

Novonix share price snapshot

Novonix shares have really taken off over the past two years. In May 2020, the Novonix share price was 23 cents. Since then, it has ascended — wait for it — more than 5,000%. It reached an all-time high of $12.47 in December 2021.

Today, Novonix has a market capitalisation of $2.26 billion with about 486 million shares on issue. The company began trading on the NASDAQ, in addition to the ASX, on 1 February.

The post Why is the Novonix share price down 6% on Friday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Novonix right now?

Before you consider Novonix, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Novonix wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Why is the Core Lithium share price tracing 6% lower on Friday?
Why is the Pilbara Minerals share price sinking 9% today?
Investing in ASX lithium shares? Here’s what you need to know
Here are the top 10 ASX shares today
3 ASX 200 mining shares that surged more than 5% today

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!