Netflix downgraded after run-up, shares down 4%

Netflix downgraded after run-up, shares down 4%
NEW YORK (MarketWatch) -- Shares of Netflix Inc. (NASDAQ:NFLX) dropped 4% to $70.52 in premarket trades on Tuesday, cooling off after a 10% rally in regular trading in the previous session. Bank of America Merrill Lynch downgraded shares of the video streaming and rental firm to underperform from buy because the stock had exceeded the firm's $72 a share price objective as of Monday's close of $73.52 a share. "Throughout the quarter, our concerns have grown surrounding the health of the domestic streaming business and timing of international streaming profitability," analyst Nat Schindler said in a note to clients. "With the stock increasing 31% over the past two weeks, we now believe the risks outweigh the reward heading into Q3