Netflix Hits Record-High Stock Value After Price Hike Announcement

Netflix logo - Netflix event - Getty-H 2017
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Netflix is now worth more than the combined value of 21st Century Fox, Viacom and CBS.

Shares of Netflix hit a record high $198.92 before settling at $198.02 on Friday, a day after the company disclosed plans for a 10 percent U.S. price hike.

Netflix said Thursday its most popular plan would increase $1 to $10.99 per month, and the stock was up 2 percent. It rose an additional 2 percent Friday.

By the closing bell on Friday, Netflix sported a market cap of $85 billion, more than CBS, Viacom and 21st Century Fox, combined.

Netflix said it is raising its price stateside so it can afford to spend on content. While some analysts worry Netflix is racking up too much debt satisfying its thirst for new shows, most applaud the effort.

After the price increase, Wells Fargo Securities analyst Ken Sena reiterated his "overweight" rating on the stock.

"We think timing makes sense," wrote Sena. "Netflix continues to gain subs despite streaming bundles, is adding originals and is improving service."

Sena also opines that Netflix's price hike is good news for Disney, which is creating its own streaming service for Pixar, Marvel and Disney-branded movies and TV shows. Also, Star Wars content will go to the upcoming service.

Sena predicts Disney's service will be priced at $9.99 a month two years from now. "We think Netflix's price hike not only supports our model, but suggests there could be upside," he wrote.

FBR analyst Barton Crockett wrote in a late Thursday report that: "We don't think Netflix would be raising rates if it was uncomfortable with current sub trends, or with competitive fallout of media conglomerates like Disney positioning to pull content and compete more directly in subscription VOD."