MoviePass popular service owned by Helios and Matheson Analytics Inc. traded on Nasdaq under HMNY lost 60% of it’s stock price in just one day. This happened just 3 days after the company announced a reversed 250 to 1 stock split when the price of the stock became $16 a share, but quickly dropped to below a dollar in just 3 days.
MoviePass is experiencing financial problems because they don’t generate enough revenue to cover their costs of taking 3,000,000 subscribers to the movies for free while receiving from them just $10/month. The company now wants to use its massive client base to push movie theaters to talk or else MoviePass would be able to divert people from AMC theater to Regal or vice versa depending on with whom they have a better revenue sharing g deal. Nobody knows how long MoviePass service would be able to survive, but shareholders of HMNY were definitely taken to the cleaners after the stock collapsed recently.