Netflix's growth is slowing, but the stock is still a buy, JPMorgan says

The Netflix logo is shown in this illustration photograph in Encinitas, California.
Mike Blake | Reuters

(This story is for CNBC Pro subscribers only). 

Netflix's growth appears to be much slower than it was during the height of the pandemic restrictions, but the streaming video stock is still undervalued, according to a new note from JPMorgan. 

The company saw a surge in subscribers earlier in the year due in part to the stay-at-home orders around the globe, adding more than 10 million in the second quarter alone. However, the company warned that user growth could slow in the future after the higher-than-expected jump.

Data from a third party firm show that user growth and app downloads have indeed slowed over the past two months, according to the JPMorgan note. 

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