Why these 3 ASX 200 stocks are crashing in this week's surging market

With only a few hours of trade left before the close of trade on Friday, the S&P/ASX 200 Index (ASX: XJO) is up 2.4% for the week, but these three ASX 200 stocks aren't joining in the rally.

Here's what's happening.

DroneShield Ltd (ASX: DRO) shares sink amid high expectations

DroneShield shares are having a week to forget.

At the time of writing, shares in the drone defence company are trading hands for $1.74, down 14.9% since last Friday's close.

The ASX 200 stock closed down 13.2% on Tuesday following a trading update.

Investor expectations were clearly high, with DroneShield shares still trading on a material premium top most of its defence stock peers.

This saw the stock get walloped despite reporting expectations of a 74% year-on-year increase in first half-year (H1 2026) revenue to $125.8 million. And the company forecast that full-year revenue will be in the range of $250 million to $270 million, up 15% to 25% from 2025.

Liontown Resources Ltd (ASX: LTR) shares sink on rising costs

Liontown shares also took a big hit this week on the heels of the company's June quarter update.

At the time of writing, shares in the Aussie lithium producer are trading for 98 cents apiece. That sees this ASX 200 stock down 17.5% over the week.

Investors have been favouring their sell buttons, despite Liontown meeting all of its FY 2026 production and cost guidance figures. And June quarter sales revenue of $235 million was up 19.3% from the prior quarter.

The ASX lithium stock also boosted its cash at bank balance by 260% over the last year to $561 million as at 30 June.

Potentially giving investors the jitters, Liontown reported an all-in sustaining cost (AISC) of $1,314 per dry metric tonne (dmt) sold, up 5% quarter on quarter.

Which brings us to…

Stanmore Resources Ltd (ASX: SMR) shares tumble on update

The third ASX 200 stock tumbling in this week's rising market is Stanmore Resources.

At time of writing, shares in the ASX coal miner are trading for $2.42 each, putting the Stanmore share price down 15.3% since last Friday's close.

The stock came under heavy selling pressure on Tuesday and Wednesday following the miner's quarterly operational update.

Like DroneShield and Liontown, the sell-down came despite a relatively solid performance.

Over the three months, Stanmore reported ROM coal production of 5.1 million tonnes, up 27% quarter on quarter. And saleable production of 3.3 million tonnes was up 3%.

However, investors may have been hoping for an upgrade in Stanmore's full-year 2026 production or earnings guidance, which remained unchanged.

The post Why these 3 ASX 200 stocks are crashing in this week's surging market appeared first on The Motley Fool Australia.

Motley Fool contributor Bernd Struben 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 DroneShield. 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.

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