It's been a bouncy but overall negative day so far this Wednesday for ASX shares. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is sitting at around 7,110 points, up an anaemic 0.05% so far. But it's looking a lot worse for the Core Lithium Ltd (ASX: CXO) share price today.
Core Lithium shares have had a clanger so far in today's session. This ASX 200 lithium stock has copped a 4.7% drop at the time of writing to $1.42 a share after closing at $1.49 yesterday and opening at $1.47 this morning.
Soon after market open, Core Lithium fell all the way down to $1.36 a share, which was a drop of almost 8% at the time.
So what's going on here?
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Why has the Core Lithium share price cratered today?
Well, there's nothing out of the company itself this Wednesday that explains this rather sizeable drop. The last major piece of news out of the company was the exploration update Core Lithium released on Monday.
This prompted enormous investor excitement at the time, with the Core Lithium share price rising more than 10%.
But Core Lithium shares have been on a tear for far longer than that. Over the past month, this ASX lithium stock has gained an impressive 50%. Year to date, Core Lithium shares are up a whopping 126% or so.
So perhaps the weakness we are seeing today is an acknowledgement that this extraordinary share price run had to end at some point. Notably, we are seeing weakness across most of the ASX lithium share space today.
Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) are also both down today, although not by as much as Core Lithium shares.
At the current Core Lithium share price, this ASX 200 lithium stock has a market capitalisation of $2.46 billion.
