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

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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.