Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today

The GameStop (NYSE: GME) share price has been jawdropping! But now another GME on the ASX might be experiencing mistaken identity.

| More on:
ASX share price on watch represented by surprised man with binoculars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Over the last week, the world has watched on in astonishment as the Reddit crew on WallStreetBets coordinate an almighty short squeeze on GameStop Corp (NYSE: GME).

The share price for GameStop has skyrocketed 790% in the last week alone. Now ASX-listed GME Resources Ltd (ASX: GME) has surged 28% on no news – Did someone get the wrong GME?

GameStop share price, mob mentality

The massive rally in GameStop comes after the future of the bricks and mortar gaming retailer looked shaky. Short positions (a way of profiting on price decrease) grew, as fund managers looked to capitalise on a collapse – then the antics of WallStreetBets stepped in.

One user devised that if investors bought and held, shorters would be forced to keep bidding higher to exit their increasingly losing short positions. The result, insane share price increases in an otherwise unextraordinary company.

This dramatic rise was only exacerbated when Tesla Inc (NASDAQ: TSLA) founder, Elon Musk, tweeted out about GameStop.

The world's richest person was then joined by venture capital titan, Chamath Palihapitiya. Chamath also tweeted that he was jumping in on the rise:

Lots of $GME talk soooooo….

We bought Feb $115 calls on $GME this morning.

Let's gooooooo!!!!!!!!

GME on the ASX

So now we are potentially experiencing this hype on the ASX, with GME Resources. A case of mistaken identity hasn't been uncommon recently. A US-listed company recently pumped more than 6000% after Elon Musk tweeted about the Signal messaging app, with no ties between the two.

GME Resources has no news out today, so it's possible that this price increase is indeed another mishap.

Obviously, there aren't any similarities between the 2 GMEs. One is a games retailer, the other is a minerals exploration company in Western Australia.

GME share price performance

With today's price jump, the GME Resources share price is up 70% in the last 12 months. The company's market capitalisation now resides around $40 million. If you were interested, GME Resource's new long lost cousin, GameStop, has a market cap of $25 billion.

Mitchell Lawler owns shares of Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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.

More on Share Market News

Top ten gold trophy.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a sour end to the trading week today.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.

3 ASX shares that could walk away winners from the 'Future Made in Australia Act'

Life is a whole lot easier when money is being thrown your way.

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Dividend Investing

With 8%+ dividends, how long can these ASX 200 passive income shares stay cheap?

I think ASX 200 investors looking for ‘cheap’ passive income shares will want to check these out.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Avita Medical, Cettire, Domino's Pizza, and Star shares are falling today

These ASX shares are having a tough end to the week. But why?

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Boral, FBR, Origin, and Regis Resources shares are pushing higher today

These ASX shares are ending the week positively. But why?

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Broker Notes

Up 15% in 13 days, is it too late to buy South32 shares?

South32 shares have risen 1%-plus per day for the past 13 trading days. Have investors missed the boat?

Read more »

Animation of man and woman shaking hands on a deal on top of gold coins.
Mergers & Acquisitions

Which ASX companies are deploying dividends to secure a $1.9 billion deal?

Dividends appear to have sealed the deal for an ASX mega-merger.

Read more »