![]() ![]() In Canaccord's view, MoviePass' rapidly growing membership will give it "considerable bargaining power" versus the movie theater operators - power to negotiate steep discounts on prices MoviePass pays for the movies its members watch, and "push costs down enough to reverse the current negative gross margin profile" of Helios and Matheson.Īdmittedly, there's little evidence of this happening just yet. If MoviePass can get folks out to the movies twice a month (let alone five times), it will entirely upend the industry. Thus, if MoviePass gets people to see even just one movie a month, they've already changed how the movie business operates in the U.S. In fact, data cruncher finds that only 3% of American moviegoers currently see a movie "once a week or more." The vast majority of us (80%) currently visit the movies only "a few times a year," "almost never," or literally "never." On the other hand, with MoviePass reimbursing some of the largest theater chains roughly $12 face value for every ticket its members buy with their MoviePass debit cards, MoviePass is probably losing as much as $4 million a month assuming its 2 million members each see one movie per month.or $28 million a month if they see two.or as much as $100 million a month if members decide to watch a movie every weekend.Īnd yet, it's precisely here that Canaccord Genuity spots an opportunity for MoviePass - and for Helios and Matheson stock.Ĭonsider: Surveys say that, on average, Americans currently go to the theater to see a movie about five times per year. ![]() That's $240 million a year, $187 million of which would be attributable to Helios and Matheson stock, which last year booked a grand total of less than $5 million in revenue. On the one hand, 2 million subscribers paying as much as $10 a month for MoviePass means the company is likely pulling down $20 million a month or more in revenue right now. Granted, not all investors think this is a good thing. Since that time, MoviePass has grown its membership base roughly five times, from 400,000 paying subscribers to a recently reported tally of 2 million. That may seem an aggressive target, but remember that just four short months ago, Helios and Matheson stock was trading for six times more after slashing its prices, posting exponential membership growth, and receiving a buy rating from analysts at Maxim Group. ![]() What's more, the analyst has assigned Helios stock a $15 price target - implying the potential for Helios and Matheson stock to more than triple in price over the next 12 months. ![]() Up on Wall Street, investment bank Canaccord Genuity has just upgraded Helios and Matheson stock to buy, reports (subscription required) this morning. Now, at long last, Helios and Matheson is getting its reward for making that bold bet. ![]()
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