In an already whirlwind year, it seems that MoviePass could be coming back from the dead. Helios and Matheson Analytics (OTCMKTS:HMNY), its parent company, could see its share price come back too. With speculation swirling on social media and a cryptic countdown clock, what do you need to know? And what is the deal with HMNY stock?
For those unfamiliar, MoviePass launched in 2017. The initial service allowed customers to see one movie per day for $9.99 a month. Although popular with frequenters of movie theaters, Helios and Matheson struggled to make ends meet. As Rebecca Rubin wrote for Variety, $9.99 is less than the price of one ticket in most cities.
HMNY stock lost its Nasdaq Exchange listing, and now trades on the over-the-counter markets. In September 2019, MoviePass called off service for its customers, citing a lack of capital. Helios and Matheson filed for bankruptcy in 2020 after simply running out of cash.
Now, investors think that MoviePass and HMNY stock could be coming back from the dead.
Why? The social media speculation all comes back to a website featuring what appears to be a countdown clock for MoviePass. At the time of writing, the clock said “5 days and 4 hours” and shared a message that “the movie is about to start.” Investors should note that this site, MoviePass Ventures, is different from the original MoviePass.com which still features the end-of-service message. Additionally, former MoviePass CEO Mitch Lowe says he is not familiar with the countdown, and MoviePass social media accounts have been inactive since 2019.
This countdown clock has investors hoping for a comeback story. HMNY stock closed at $0.0085, representing gains of 165% from its opening price of $0.0027 on Tuesday. Additionally, Helios and Matheson saw higher-than-average trading volume.
HMNY Stock and the MoviePass Return?
So what does this all mean for investors?
Right now it is important to be extremely cautious. We currently do not know who is running the MoviePass Ventures website, or what their plan is. Investors also have received few updates from the company since Helios and Matheson filed for Chapter 7 bankruptcy in January 2020. At the time, the HMNY CEO and several board members resigned.
However, it is also important not to dismiss the power of social media speculation. Right now, one of the biggest investor hopes seems to hinge on AMC Entertainment (NYSE:AMC). Back in 2018, an analytics firm highlighted that MoviePass increased AMC concession sales by 80%. Although the movie theater operator launched a competing service, some retail investors see a match made in heaven. Could a relaunched MoviePass be what AMC stock needs to weather Covid-19?
At this point, we really do not know. Keep a close eye on the HMNY stock news and enjoy some popcorn while you are at it. If nothing else, know that Mark Wahlberg is busy producing a documentary about MoviePass.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.