Helios And Matheson Analytics (HMNY) Stock: The Sky Is The Limit


Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having an incredibly strong start to the trading session for yet another day. The stock has been on a tear as of late since the company released information that showed that their efforts with regard to MoviePass have lead to incredibly strong sales. Of course, our partners at Trade Ideas were the first to alert us to the gains on the stock today. Currently (9:40), HMNY is trading at $23.23 per share after a gain of $2.14 per share (10.15%) thus far today.

HMNY Continues Skyward, Here’s What Started It

For those of you that haven’t been following the news with regard to Helios and Matheson, the big story started back in August – August 15th to be exact. This is when HMNY announced that it has acquired a controlling stake in a product known as MoviePass. While many questioned whether or not this was a smart move at that time, there’s no one questioning the validity of the acquisition today.

Within just about a month and a half, subscribers for MoviePass skyrocketed. The company announced that it reduced the price of the service from around $40 per month to just $9.95 per month. This led to a massive increase in demand. In about a month and a half, subscribers jumped from 20,000 to more than 400,000. This is ultimately what led to the gains we’ve seen in the stock over the past several weeks.

HMNY Carved A Key Niche, And Will Be A Driving Force As A Result

At the end of the day, the entertainment industry is an overwhelmingly large one. It’s the primary reason that companies like Netflix, Hulu, Walt Disney, and more have grown to be such behemoths. The company worked to break into this industry in a big way in the past using applications. However, the acquisition of MoviePass put the company on a whole new playing field.

With MoviePass, consumers have the ability to watch any movie they’d like in the movie theater on an unlimited basis. Doing this for the price of a single movie theater ticket is an incredible offering and one that’s likely to lead to even further demand.

When compared to other services, it’s easy to see why HMNY has a smash hit with MoviePass. At the end of the day, the company has literally no competition. While competing with itself in the space, it’s charging less money that consumers can purchase a subscription for the middle-tier or top-tier services at Netflix. With comparable prices to streaming services that have proven to drive the interest from the masses, it only makes sense that the niche carved out by HMNY will only prove to be another staple in American entertainment with MoviePass. To discount the value of this offering would simply be absurd.

The Cross-Selling Opportunity Here

When it comes to HMNY, MoviePass will do more than drive sales for itself. If the company is smart, it will grab the attention of the masses using this offering. From there, the company will have the ability to cross sell services, bringing more attention to RedZone Maps and other products the company may be working on moving forward. Think about it, the company has 400,000 new users at MoviePass to market RedZone Maps to now. The company could use this audience to create an ecosystem around its products, a process first mastered by Apple.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on HMNY. In particular, we’re interested in following the company’s ongoing work surrounding MoviePass. We believe that this product has massive value, giving Helios and Matheson Analytics everything it needs to become a household name. We’ll also be keeping an eye on the company’s work surrounding RedZone Maps as well as any new product the company gets involved in.

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