Netflix Inc. (NASDAQ:NFLX) saw its shares surge throughout the week last week. Shares went from last week’s Monday closing price of $177.01 to today’s, all time high of $199.39 on early trading. This represents almost a 13 percent increase in a single week.
Shares jumped from $184.45 last week at Wednesday’s close to $194.39 at Thursday’s close after Netflix’s announcement to increase subscription prices and now, shares are showing a strong momentum to potentially push past $200.
Netflix increased its prices for the standard plan, which went from $9.99 to $10.99 a month. The company also increased its high quality 4K resolution plan, which went from $11.99 to $13.99.
The sudden surge "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."
Netflix shares are up more than 48 percent from the same period in the previous year. Anmuth sees the stock going at least 6 percent higher over the next 12 months.
Netflix is also expected to report its quarterly earnings, which is expected to be on October 16, 2017 for the quarter ending on September 2017.
For the third quarter, Netflix projected for revenue to jump to nearly $3 billion, which will represent almost a 7 percent increase quarter over quarter.
The company is projecting net income to be more than double from the second quarter of the fiscal year. In the second quarter, Netflix reported a net income of $66 million or a $0.15 EPS increase. For the third quarter, Netflix is projecting a net income of $143 million or a $0.32 EPS increase.
According to Zacks Investment Research, analysts’ consensus forecast EPS for the third quarter is $0.32. The reported EPS for the same quarter last year was $0.12.