A string of bad luck is upon the Helios and Matheson stock. After plunging last week, closing down more than 70% on Friday, shares are continuing to take a hit this Monday morning.
But why?
Helios and Matheson Stock: Where It All Started
It all started last week, with things taking a turn for the worst on the last day of trading.
Earlier in the week, Helios and Matheson (NASDAQ:HMNY) disclosed that there was an issue preventing customers from using their MoviePass credit cards. Then a regulatory filing came forth, revealing the company did not make required payments, forcing the company to borrow $5M.
Shares then plummeted. Read more about the plunge here.
Helios and Matheson Stock Today: July 30th, 2018
On Monday, Helios and Matheson shares continued to take the brunt of the situation, opening down and already becoming a Yahoo Finance trending ticker of the day—but not in a good way.
At 10:43 a.m. EDT, according to Yahoo Finance, the Helios and Matheson stock is trading at $1.17, putting the stock down $0.83, or 41.50%.
Considering how early it is, the chances of the stock dropping further are likely.
Too Good to be True?
Acquiring a stake in MoviePass was once thought to be a major milestone for Helios and Matheson. When the company made the announcement, the stock soared (it even hit more than $30 in less than a month).
But now it seems trouble has found its way into the Matheson world, and the market is having second thoughts.
Other Possibilities
There’s also the possibility that because it has only been a few days since the MoviePass troubles, the market may need some time to react and to move on from it.
For these reasons, I suggest watching this stock throughout the week, just to see if it recovers or gets worse.
What do you think will happen to the Helios and Matheson stock today? Will it drop more than 70% again?
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