Helios and Matheson Analytics Inc. (NASDAQ:HMNY)
Helios and Matheson Analytics Inc. (NASDAQ:HMNY) traded higher in Monday’s trading session as investors continue to take note of the company’s latest acquisition, MoviePass. The stock was up by 33.9% on viral subscriber growth.
HMNY Stock Performance
HMNY is up by more than 400% for the year, investor confidence on the stock having been strengthened by the acquisition of a majority stake in MoviePass. The stock is currently trading at multi-year highs as it closes in on its 52-week high of $23.49 a share.
The stock’s impressive performance has to do with a milestone that MoviePass has achieved in recent weeks. The technology company has surpassed 400,000 paying monthly subscribers over the past month – up from less than 20,000 in August.
MoviePass Subscriber Growth
The robust subscriber growth has mostly come from an innovative technology that learns subscriber’s tastes and makes recommendations. Reduction of the monthly subscription to $9.95 also had a positive impact.
A survey on MoviePass subscribers shows that most of them decided to start watching movies in theaters because of the MoviePass subscription service. The company expects its subscription base to grow to 2.5 million paying subscribers over the next 12 months.
A decision by Netflix, Inc. (NASDAQ:NFLX) to increase the prices of its subscription plans has also been a blessing in disguise for the Helios and Matheson Analytics subsidiary. The price increase has essentially made MoviePass offerings relatively cheap, thereby bolstering subscriber’s and investor’s excitement.
“MoviePass is the ‘all-you-can-eat’ movie theater experience. Though expensive for the company in the short-term, it’s a significant benefit and more convenient for customers. With MoviePass, there’s no movie ticket prices to think about — going to the movies will become an everyday experience rather than an occasional treat,” said MoviePass CEO Mitch Lowe.
In a bid to attract more subscribers and a keep studios happy, Helios and Matheson Analytics Inc. (NASDAQ:HMNY) has started to use artificial intelligence and algorithms to provide studios with precise data for effective advertising. Movie theaters have already reported a 400% increase in attendance attributable to MoviePass.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.