Helios and Matheson Analytics Co. (HMNY) shares are really suffering due to the downhill spiral of MoviePass.
MoviePass, which is owned by the company, has caused the shares to plummet due to speculation. MoviePass is seen by analysts as being a gamble, and it depends heavily on relationships with theaters.
MoviePass has been making abrupt changes in the past couple of months, after it failed to be profitable last quarter. The company offers two subscription plans. One allows customers to see a movie everyday for $9.95 a month and the other offers three movies for $7.95 a month. However, MoviePass is still a gamble, and it's unclear if the company will become profitable before Helios and Matheson can secure more funding.
On Tuesday, May 22, shares of HMNY plummeted over 12% to $0.53 when the market closed.
As of Wednesday, May 23, HMNY shares were still down. The stock dropped nearly 8% when the market closed on Wednesday.