MoviePass' parent company lost 97 percent of its value this week
- It's a penny stock, so it doesn't take much to send shares on wild swings.
- Still, the plunge stands as Helios and Matheson's worst week on record since going public in 1997.
- By Friday's close, Helios and Matheson had fallen to an implied market value of roughly $400,000.
MoviePass' parent Helios and Matheson Analytics lost 97 percent of its market value this week, falling as low as 5 cents per share Friday. The stock closed at 7 cents.
It's a penny stock, so it doesn't take much to send shares on wild swings. Still, the plunge stands as Helios and Matheson's worst week on record since going public in 1997, even worse than last week's 92 percent punishment for the top spot.
Shares lost 60 percent of their value on Monday after reports that some customers couldn't use the popular movie subscription service.
The stock shed another 38 percent on Tuesday after MoviePass announced higher pricing for its standard plan, which allows moviegoers to see one movie a day with certain limitations. MoviePass also said first-run movies playing in more than 1,000 theaters won't be available to subscribers for the first two weeks. The news initially sent shares up 150 percent, but the spike didn't last.
Helios and Matheson tanked 54 percent Wednesday and 56 percent Thursday. A week earlier, the company took out an emergency loan to cover its losses and keep MoviePass up and running. The company released a statement Thursday titled "We're Still Standing" in which it maintained confidence in future profitability.
By Friday's close, Helios and Matheson had lost another 30 percent during the session, falling to an implied market value of roughly $400,000 (based on the most recently stated outstanding share count of 6,687,647 shares).
Correction: This story was revised to correct when Helios and Matheson took out an emergency loan.