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The Novonix Ltd (ASX: NVX) The stock price struggled on Friday amid losses seen in the ASX tech sector. Shares of the company closed down 2.49% on Friday.
Shares of the metals and battery technology company ended the day at $1.76 apiece. Earlier today, they hit an intraday high of $1.79. and a minimum of $1.71.
Today’s price action means its shares hit a fresh 52-week low, topping the previous 52-week low of $1.77 it hit on Wednesday.
The S&P/ASX 200 All-Tech Index (ASX:XTX) also struggled today, ending with a loss of 3.09%. It was also a difficult day for the market as a whole, with the S&P/ASX 200 Index (ASX:XJO) closing down 1.23%.
There was no news from the company today to make sense of the sale of its stock price. However, some developments have taken place for the company in the recent past. Let’s cover the highlights.
What’s going on with Novonix?
Novonix has had negative media coverage over the past 10 days, which may have contributed to its share price drop.
The biggest news came on September 20 when Novonix auditor PriceWaterhouseCoopers (PWC) noted “material uncertainty” with the company going live. as reported by my crazy colleague Zach.
Reasons given for the uncertainty were the fact that Novonix recorded a loss of $71 million in its annual report for fiscal 22, as well as a cash outflow of $40 million, Zach said.
More recently, Novonix may also be feeling the pinch of lower-than-expected U.S. jobless numbers on Sept. 29, raising fears that the Fed may proceed with further rate hikes to rein in inflation.
Investors may assume that the higher interest rates rise, the more likely the Fed is to miss the soft landing it predicted, steering them away from riskier investments.
Novonix stock price overview
Novonix’s share price is down 80% since the start of the year. During this time, the S&P/ASX 200 Index (ASX: XJO) is down 13% over the same period.
The market capitalization of the company is approximately $878.45 million.