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Netflix stock is close to topping $200 for first time ever

  • Netflix is closing in on $200 per share in premarket trading Monday.
  • On Thursday, Netflix raised its prices on some of its streaming plans.
  • JPMorgan analysts like the company's aggressive implementation, saying the Netflix is "taking a very different approach."

Netflix edged toward $200 per share as the stock's momentum builds from last week's increase on some of its prices for streaming plans.

The shares hit a record high during trading Friday of $198.92 following the price increase. On Monday, the stock set a fresh intraday record of $199.40 a share, but slipped back to $196.87 at the close.

Netflix raised its prices Thursday on some of its streaming plans. 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," JPMorgan's Doug Anmuth wrote 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 Oct. 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 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.