Why did the Novonix share price crumble 14% in August?

The Novonix share price fell 77% over the eight months ended August.

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Key points

  • The Novonix share price crashed 14.5% over the course of August to close the month at $2.42 
  • That's despite the only news from the company – its full-year earnings – sending the stock 4% higher 
  • As of the final close of August, the tech stock had slumped 77% year to date 

August proved disastrous for the Novonix Ltd (ASX: NVX) share price. It tumbled 14.49% over the course of last month despite no word from the company until its final session.

After closing July trading at $2.83, the stock plummeted to finish Wednesday's session at $2.42.

For context, the S&P/ASX 200 Index (ASX: XJO) posted a 0.6% gain in the month just been. Meanwhile, the company's home sector, the S&P/ASX 200 Information Technology Index (ASX: XIJ) slumped 0.4%.

So, what weighed on the battery technology and materials giant last month? Let's take a look.

What went wrong for the Novonix share price in August?

The Novonix share price closed last month in the red despite gaining 4% on the release of the company's full-year earnings.

On 31 August the company revealed its revenue had increased 61% year-on-year in financial year 2022. It brought in $8.4 million for the period.

But it wasn't all sunshine. The company's full-year after-tax loss deepened by 295% to $71.4 million.

The monthly tumble may have also had something to do with the ASX 200 tech stock's strong July performance. It lifted 24% over the course of July following five consecutive monthly losses.

Indeed, as of the end of August, the stock had dumped 77% since the start of 2022. Comparatively, the ASX 200 had fallen 8% and the tech sector had plummeted 30%.

Perhaps unsurprisingly, the Novonix share price was the sector's worst performer over the eight months ended August.

Though, those of EML Payments Ltd (ASX: EML) and Megaport Ltd (ASX: MP1) weren't far behind, with respective falls of 71% and 62% for the period.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments and MEGAPORT FPO. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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