Recent reports show that Millennials continue to invest in Helios and Matheson Analytics (HMNY). As the company’s stock takes a dive, more and more Millenials want in on the MoviePass parent company. HMNY stock reached a record high months ago before coming back down to Earth. Questions about the profitability of MoviePass destroyed the stock, leading to a value under a dollar for the past few weeks.
Why Are Millennials Picking Up The Stock?
Unsurprisingly, some investors are willing to take the risk on HMNY’s stock. An investor can buy hundreds of shares with relative ease for little money. Millennials, it appears, want to gamble with the stock in the hopes that MoviePass can succeed. If MoviePass starts to cut down on losses and turn a profit, then the stock stands the chance of breaking through its all-time high and then some.
Owning even a few shares of the stock today would mean an incredible profit down the road. HMNY stock is cheap enough to buy in bulk with the potential to make a huge profit. Without a doubt, Millennials want to take that risk, and many of them are doing exactly that right now. They’re taking the popular adage of cryptocurrency investors, buying on the dip and expecting a major turnaround sooner or later.
While cryptocurrencies may soon break out of their slump, that might be much tougher for Helios and Matheson Analytics. For now, MoviePass burns through millions and millions of dollars every month. The company loses money every single time a subscriber uses their MoviePass card to watch a movie. Recent changes may reduce overall movie viewings, but they won’t stem the losses for the company anytime soon.
MoviePass revealed a $300 million line of credit in its name days ago. That much credit could keep the company in operation for longer than a year. Sadly, turning the company into a profitable venture could take much longer than that. The company’s business model makes no sense from a financial standpoint, and potential solutions may not turn losses in gains now, or ever.
Investing in HMNY is considered an outrageous gamble right now. Most analysts believe the company is headed toward bankruptcy. Despite aggressive promotions and excellent subscriber growth, a path to profitability doesn’t seem available. Helios and Matheson may never figure out how to make MoviePass profitable. The company may not be around long enough for that to ever happen, either.