#MOVIEPASS STOCKS MOVIE#
The rub is if the data it collects will be worth every movie ticket it has to buy. There will be money to be made as the platform's popularity grows, and MoviePass itself expects to add another 2.5 million subscribers in the year ahead. It can also approach movie studios and possibly even streaming services including Netflix with millennial consumption trends so they can make better content investing decisions.
It can market related merchandise, advertising, and concessions to its growing subscriber base. It's able to analyze consumer trends, patterns, and activities, and it can burn both ends of that data candle.
It sees big value in the data that it stands to collect. MoviePass - which is expected to go public itself early next year - feels that spitting out movie tickets can be a loss leader. Naysayers think the business model may be bananas, but Kinstlinger feels that MoviePass will be successful in finding other ways to monetize its growing user base. Maxim analyst Brian Kinstlinger initiated coverage of Helios and Matheson with a buy rating and a $20 price target earlier this month. It's working on its fifth consecutive week of at least double-digit percentage gains. 15 and drifted down to a $2.63 close several weeks later when it announced hitting 400,000 subscribers - has been on fire. The stock - which went from $2.79 to $2.95 the day the new price was announced on Aug. It's been off to the races for Helios and Matheson ever since. 14 that its paying subscriber base had soared from 20,000 to 400,000 over the past month. The stock would go on to languish for weeks, until MoviePass revealed on Sept.
The value proposition was undeniable, and when the website crashed the day the price cut was announced and when MoviePass conceded that it was going to take several weeks before it could send out all of the new membership debit cards, it was clear that Helios and Matheson's multiplex marathoner was a hit. MoviePass typically pays face value for its movie tickets, so if someone sees just two films a month - or in some larger metropolitan markets a single flick - MoviePass is theoretically losing money. MoviePass slashed its price by roughly two-thirds in mid-August, and the market's initial reaction was skepticism. The monster rally for Helios and Matheson didn't kick off right away. It's also an obsolete comparison now that Netflix has bumped its monthly cover charge to $10.99 a month. A celluloid buffet for less than $10 a month drew immediate comparisons to Netflix (NASDAQ: NFLX), but it wasn't a fair comparison then given the limitations of the MoviePass product and the larger stumbling block to profitability. Helios and Matheson is the majority stakeholder in MoviePass, the multiplex smorgasbord that turned heads this summer when it slashed its price to $9.95 a month.
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