MoviePass Parent Stock Imploding

Helios and Matheson Analytics CEO Ted Farnsworth claims Wall Street understands the firm’s MoviePass business model enabling subscribers to go to the movies daily for a $9.95 monthly fee.

Investors apparently think otherwise, sending HMNY shares down more than 85% at the market close July 26 – and 48 hours since the company engineered a 1-for-250 shares reverse-stock split to avoid having its stock delisted by Nasdaq.

The company’s market capitalization hovers around $7.4 million, while operating a business that spent $21 million monthly in the most-recent fiscal quarter paying exhibitors face value for every ticket consumed by its more than 3 million subscribers.

At the stock’s present rate of freefall, shares will again fall below the $1 minimum in less than two weeks.

“I think [HMNY] has been roundly ridiculed [by Wall Street] since it bought MoviePass and cut the [subscription] price below cost,” Wedbush Securities media analyst Michael Pachter said in an email.

 

One thought on “MoviePass Parent Stock Imploding”

  1. Movie Pass will sink. Right idea. Yes. But the price. No.
    Try about $30 a month. A buck a day.. And let people see one movie a day.. Any Movie.
    (7) day’s a week.
    Then maybe it will work. Right now they are bleeding money..
    No good!

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