Why has the Boss Energy (ASX:BOE) share price tanked 30% in 2 weeks?

The last 2 weeks haven't been good to Boss Energy on the ASX. Here's why.

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The Boss Energy Ltd (ASX: BOE) share price has taken a tumble over the last fortnight despite no news having been released by the uranium producer.

The company's stock is dipping alongside the price of uranium. The commodity's spot price peaked 2 weeks ago today and has been falling since.

In a similar pattern, Boss Energy's shares hit a new 52-week high of 58 cents on 16 September. In fact, over the 30 days ended 17 September, Boss Energy's stock gained a massive 150%.

However, Boss Energy's stock's value has fallen 30.88% over the last fortnight.

At the time of writing, the Boss Energy share price is flat, trading at 24 cents.

Let's take a look at what's been driving Boss Energy's stock down lately.

share price plummeting down

Image source: Getty Images

Why is the Boss share price falling?

The Boss Energy share price is dipping as uranium's day in the sun seemingly comes to a close.

The uranium spot price reached US$50.80 – its highest price since 2013 – on 17 September.

Uranium's surge seemed to have been spurred by Canadian Fund, Sprott Physical Uranium Trust. The trust has been snapping up huge amounts of the commodity off the spot market.

Additionally, as the Wall Street Journal reported, nuclear energy, of which uranium is the key, might have a part to play in decarbonisation.

The commodity could have been boosted by the same influences that saw copper, nickel, and lithium prices surge recently.

Unfortunately, since the spot price of uranium peaked on 17 September, its bullish run has seemingly ended. It has since fallen 18% to US$43.

The Boss Energy share price isn't the only uranium-focused stock that's been dipping over the last 14 days.

Those of fellow uranium explorers Deep Yellow Limited (ASX: DYL) and Peninsula Energy Ltd (ASX: PEN) have fallen comparable amounts over the last 2 weeks.

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 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 Bruce Jackson.

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