Shares for MoviePass' parent company dropped to a new low on Tuesday.
As The Hollywood Reporter explained, Helios and Matheson Analytics saw its stock shares drop 12 percent to a new low of $0.53 on Tuesday.
Wall Street increasingly views the movie-ticket-per-day subscription service as a giant, unproven gamble, THR reported.
Its unclear why the stocks dropped so suddenly on Tuesday. Two weeks ago, the stock dropped 30 percent after the company revealed it had $15.5 million cash on hand with $27.9 million owed, even though the company spends nearly $22 million per month on MoviePass.
MoviePass is a rather uncertain subscription service for HMNY. For $9.95 per month, subscribers receive one movie ticket per day, which is essentially paid for by MoviePass. The company has about 3 million subscribers in total.
However, CEO Mitch Lowe said the company will be profitable early next year because it will find a way to sell user data to marketing advertising companies.
Hollywood remains dubious, even though theaters and studios are clearly benefiting in the near term, given the millions of tickets MoviePass purchases each month, many to smaller films subscribers wouldn't normally see in theaters if they had to pay full fare, according to The Hollywood Reporter.
On Monday, Wall Street analyst Julian Lin wrote an opinion piece saying investors shouldnt hold much stock in HMNY. He said the company faces too many problems to be worth the trouble of investing.
While I do view this as a very clear short, the main and most important thing which would be very bullish would be if subscribers started seeing fewer movies as this would decrease expenses, and if they also simultaneously started buying more concessions, he wrote, according to the Deseret News. I however do not see this as being so likely as the only reason to have the service would be to use it frequently, and fewer visits also would imply fewer opportunities to purchase concessions.
Lin opined that HMNY does not currently present any potential value and is a strong short candidate.
As The Hollywood Reporter explained, Helios and Matheson Analytics saw its stock shares drop 12 percent to a new low of $0.53 on Tuesday.
Wall Street increasingly views the movie-ticket-per-day subscription service as a giant, unproven gamble, THR reported.
Its unclear why the stocks dropped so suddenly on Tuesday. Two weeks ago, the stock dropped 30 percent after the company revealed it had $15.5 million cash on hand with $27.9 million owed, even though the company spends nearly $22 million per month on MoviePass.
MoviePass is a rather uncertain subscription service for HMNY. For $9.95 per month, subscribers receive one movie ticket per day, which is essentially paid for by MoviePass. The company has about 3 million subscribers in total.
However, CEO Mitch Lowe said the company will be profitable early next year because it will find a way to sell user data to marketing advertising companies.
Hollywood remains dubious, even though theaters and studios are clearly benefiting in the near term, given the millions of tickets MoviePass purchases each month, many to smaller films subscribers wouldn't normally see in theaters if they had to pay full fare, according to The Hollywood Reporter.
On Monday, Wall Street analyst Julian Lin wrote an opinion piece saying investors shouldnt hold much stock in HMNY. He said the company faces too many problems to be worth the trouble of investing.
While I do view this as a very clear short, the main and most important thing which would be very bullish would be if subscribers started seeing fewer movies as this would decrease expenses, and if they also simultaneously started buying more concessions, he wrote, according to the Deseret News. I however do not see this as being so likely as the only reason to have the service would be to use it frequently, and fewer visits also would imply fewer opportunities to purchase concessions.
Lin opined that HMNY does not currently present any potential value and is a strong short candidate.
