Netflix is closing in on $200 per share as the stock continues momentum built from last week’s increase on some of its prices.

The streaming company’s stock was up 0.85 percent to $199.70 per share in premarket trading on Monday. The shares hit a record high during trading Friday of $198.92 following the price increase.

On Thursday, Netflix raised its prices on some of its streaming plans, according to changes reflected on the company’s subscription page. Its $10/month high-definition plan now costs $11 and the 4K streaming plan, which provides higher-quality content, will cost $14 per month, a $2 increase.

The hike “comes sooner than expected, but we like that NFLX is taking a very different approach with rapid implementation putting the increase fully in place by December,” wrote JPMorgan’s Doug Anmuth in a note Monday. “We think there will be minimal negative impact on churn and overall gross adds given content strength and the continued disruption of linear TV.”

The changes affect new U.S. members, while existing members will be alerted of the price change on October 19 ahead of their next billing cycle.

Netflix shares are up more than 59 percent this year through Friday. Anmuth sees the stock going at least 6 percent higher from here over the next 12 months.

“We believe this is also a positive read-through for 3Q subs as NFLX is more likely to raise prices from a position of strength,” wrote Anmuth.

Netflix said the price change will “roll out to members over the course of the next several months.” The company reports earnings on Oct. 16.

— CNBC’s Todd Haselton contributed to this report.

Source: Tech CNBC
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