Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having an overwhelmingly strong start to the day in the market this morning and for good reason. Investors continue to focus on the enormous growth we're seeing out of the company's MoviePass. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:31), HMNY is trading at $9.25 per share after a gain of $0.95 per share (11.45%) thus far today.
MoviePass Sends HMNY Toward The Top
Mitch Lowe has taken hold of Helios and Matheson's MoviePass, and it's a good thing he did. He has incredible experience in the industry, being the founder of NetFlix and taking RedBox to the top; MoviePass is the next big accomplishment on his roster, and he is doing overwhelmingly well.
Recently, Lowe cut the monthly, no-commitment membership fee from between $40 and $50 per month to only $9.95 per month. This was a strong move, bringing interest from the masses toward the RedBox-like movie service. So, it's no surprise that MoviePass has seen massive growth.
In just 3 weeks, HMNY was able to boast some impressive growth. In fact, in these 3 weeks, subscriber growth went from the low tens of thousands to more than 400,000! Considering this massive spike in demand, it only makes sense that we're going to see more strong growth, and Lowe believes this to be the case as well. While modest, Lowe made it clear that the subscriber base is growing at an incredibly fast rate. Here's what he had to say:
“I thought it would have taken us more than six to eight months to get as many subscribers as we did in the first two days.”
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on HMNY. In particular, we're interested in watching the ongoing growth surrounding MoviePass. We're also interested in following the work the company is doing with regard to the RedZone Map app. We'll continue to follow the story closely and bring the news to you as it breaks!