Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having yet another incredible day in the market today as investors continue to take note of the potential surrounding the company’s latest and greatest product – MoviePass. At the end of the day, the product is proving to be a hit that’s hard to ignore. Once again, the stock is flying as investor excitement continues to lead to a flood on the ticker. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:56), HMNY is trading at $17.25 per share after a gain of $1.50 per share (9.52%) thus far today.
HMNY Has A Smash Hit With MoviePass
As mentioned above, Helios and Matheson continues to fly in the market. In fact, over the past month or so, the gains in the value of the stock are better explained in multiples than percentages, gaining 6X+ on its value over just the past 30 days. So, what’s the big deal? Why are investors clamoring to get their hands on more HMNY? The answer is a very simple one.
At the end of the day, the answer to the question above is one simple word – MoviePass! It all started back on August 15th, when HMNY announced that it acquired a majority stake in MoviePass. For those of you who haven’t been following the product, MoviePass is a monthly service that allows subscribers to actually go and watch movies at the movie theater on a relatively unlimited basis. While the price for the service months ago was around $40 a month, Helios and Matheson took a page out of the Amazon playbook, ultimately reducing the price to $9.95 per month and accepting minimal margins for the opportunity for the product to spread like wildfire.
The Plan Worked!
There’s no denying the success of the plan surrounding MoviePass that was put in place by Helios and Matheson Analytics. By reducing the price of the MoviePass service, the company greatly increased the demand for the service. In fact, the company recently announced that, since the acquisition, its MoviePass subscriber-base had grown from just 20,000 to 400,000. That’s the kind of growth that’s impossible to ignore, and a big reason why HMNY has grown so dramatically.
NFLX Throws HMNY A Bone
To make matters better, recent news surrounding Netflix caused Helios and Matheson to go on yet another run. The news was that Netflix would be increasing its prices for both its middle tier and top tier services. In fact, because of the price increase, both of these services are now more expensive than MoviePass.
As a result, investor excitement ensued. After all, when giving the opportunity to either stay home and watch a streaming movie, or go to the movie theater and watch a new release for a lower price, what would you choose? Investors believe that more and more consumers are likely to opt for MoviePass.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to follow HMNY incredibly closely. In particular, we’re interested in following the ongoing growth of MoviePass, as we believe that HMNY may have created a goldmine when they reduced the price of the service. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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