MoviePass Could Be a Victim of its Own Success
Volatility has been the calling card for Helios and Matheson (NASDAQ: HMNY) since the data-analytics specialist moved to acquire a majority stake in MoviePass. The speculative stock has seen its value cut in half over the past five trading days, and the wild ups and downs are likely to continue.
Helios and Matheson shares took a break from the cascade, moving higher early on Thursday. Online chatter about MoviePass hitting a million subscribers -- unconfirmed by the company itself -- is being credited with the move, but it could just as easily be a dead-cat bounce. However, even if MoviePass is at a million subscribers just two months after lowering the price of its cinema smorgasbord to a mere $9.95 a month, that may result in more pain than gain for the spunky platform.
The new $9.95-per-month price went into effect in August. Image source: MoviePass.
Source: Fool.com
