5 Big Companies That Don’t Drug Test Employees

In this article, we discuss 5 big companies that don’t drug test employees. If you want to see our detailed discussion on the topic, check out 25 Big Companies That Don’t Drug Test Employees. 

5. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 108

Netflix, Inc. (NASDAQ:NFLX), like many companies in the technology sector, does not have a drug testing policy for employees. On June 13, BofA reiterated a Buy rating on Netflix, Inc. (NASDAQ:NFLX) and raised its price target on the stock to $490 from $410. BofA noted that Netflix’s password sharing crackdown was faring better than anticipated, and this will support upward Wall Street estimate revisions.

According to Insider Monkey’s first quarter database, 108 hedge funds were bullish on Netflix, Inc. (NASDAQ:NFLX), compared to 117 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with 4.26 million shares worth $1.47 billion. 

LVS Advisory made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q1 2023 investor letter:

“We initiated our investment in Netflix, Inc. (NASDAQ:NFLX) during the summer of 2022 (discussed in our Q3 2022 letter). Netflix was a baby thrown out with the bath water by the market last year. We found Netflix attractive because the company signaled that it would hold expenses flat while better monetizing its account base via an advertising tier and paid sharing. Despite an impeccable track record of execution, the market didn’t believe Netflix could navigate this transition. While the market now appears to buy into the expense story the market doesn’t fully appreciate the revenue growth story that will play out from the new monetization initiatives. Furthermore, the stock’s pullback during the banking crisis provided an attractive entry point for us to make Netflix an overweight position.”

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 155

Alphabet Inc. (NASDAQ:GOOG) is one of the Big Tech firms that do not drug test employees. On April 25, Alphabet Inc. (NASDAQ:GOOG) reported a Q1 GAAP EPS of $1.17 and a revenue of $69.79 billion, outperforming Wall Street consensus by $0.10 and $950 million, respectively. 

According to Insider Monkey’s first quarter database, 155 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 152 funds in the earlier quarter. Harris Associates is the biggest stakeholder of the company, with 36.90 million shares worth $3.8 billion. 

Here is what Tweedy, Browne has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2023 investor letter:

“Portfolio activity slowed somewhat during the quarter as equity prices advanced. While there were a few new positions established, and a few sales, portfolio activity overall was quite modest compared to the rather brisk pace of the last two years. On the sell side, a number of holdings were sold or pared back, including Alphabet Inc. (NASDAQ:GOOG) among others. The stock prices of these businesses had either reached our estimates of their underlying intrinsic values or had been compromised in some way by virtue of declines in our estimates of their underlying intrinsic values and future growth prospects. Or, they may have been sold or trimmed to make room for new additions, or to generate losses, which could be used to offset realized gains.”

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 220

Meta Platforms, Inc. (NASDAQ:META) is another tech giant with a relaxed drug testing policy for its employees. On April 25, Meta Platforms, Inc. (NASDAQ:META) reported a Q1 GAAP EPS of $2.20, beating market consensus by $0.23. The revenue of $28.65 billion also exceeded Wall Street estimates by $990 million. 

According to Insider Monkey’s first quarter database, 220 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META), compared to 194 funds in the prior quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 8 million shares worth $1.70 billion. 

Here is what Baron Durable Advantage Fund has to say about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:

“Shares of Meta Platforms, Inc., the world’s largest social network, were up 76.0% this quarter due to decisive cost discipline actions, improving adoption of new advertising products, the company’s work in generative artificial intelligence (AI), and the broader rally in technology stocks. Meta is the mega-cap technology company most focused on profitability through cost cutting, including layoffs of more than 20% of its staff and reductions in its data center and office footprint. On the top line, Meta continues growing its user base with daily average users up 5% year-over-year in the last quarter. Engagement remains healthy with impressions up 23% year-over-year, and newer advertising formats (like Instagram Reels) are reportedly picking up steam with 40% of advertisers now using Reels. Longer term, we believe Meta will utilize its leadership in mobile advertising, massive user base, innovative culture, and technological scale to sustain durable growth for years to come, with further monetization opportunities ahead in newer areas such as WhatsApp.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 243

In 2021, Amazon.com, Inc. (NASDAQ:AMZN) relaxed its drug testing policy and announced that it would not screen for marijuana in its pre-employment drug testing. The company only tests truck drivers and heavy equipment operators for marijuana, since it is mandated by the Department of Transportation. 

On April 27, Amazon.com, Inc. (NASDAQ:AMZN) reported a Q1 GAAP EPS of $0.31 and a revenue of $127.4 billion, outperforming Wall Street estimates by $0.11 and $2.85 billion, respectively. 

According to Insider Monkey’s first quarter database, 243 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 240 funds in the prior quarter. Harris Associates is a significant position holder in the company, with 22.8 million shares worth $2.3 billion. 

This is what Baron Funds said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2023 investor letter:

“Amazon is probably the best example of a company that was built with an ability to rapidly adapt to change from its very inception. We have written a lot over the years about how Amazon’s culture and organizational structures prioritize and enable rapid innovation. Historically, programming code was written in a sequential waterfall fashion, creating significant interdependencies between different developer teams in the organization and slowing down innovation. Amazon famously required all developers to expose their work externally via standardized Application Programming Interfaces (APIs). A novel and risky approach, it enabled development teams to work in parallel, created a rapid feedback loop with customers, and turned Amazon into one of the most innovative companies in the world. The culture of constant experimentation and the willingness to take risks and fail fast (remember the Amazon Fire phone?) became the core pillars of the company’s culture and led to revolutionary ideas like third-party sales (letting competitors sell similar products alongside your own), Amazon Prime Video, and Amazon Web Services (AWS), making the company a disruptor and leader in multiple multi-trillion-dollar industries.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Microsoft Corporation (NASDAQ:MSFT) carries out a pre-employment background check on employees but does not drug test specifically. On June 14, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.68 per share, in line with previous. The dividend is payable on September 14, to shareholders of record on August 17. 

According to Insider Monkey’s first quarter database, 289 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 259 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with a position worth $11.3 billion. 

Here is what Baron Durable Advantage Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“Baron Durable Advantage Fund focuses on businesses with these characteristics. Microsoft, our largest holding, is a good case study of a business’s ability to adapt and pivot after years of suffering the consequences of a stale management team that was resting on its laurels. The company’s de facto monopoly position (Microsoft Windows + Office) in enterprise desktop and worker productivity suites in the client-server world made the company complacent and reluctant to take risks and continue to innovate. The stock languished for almost 15 years while Apple, Amazon, Google, and Facebook led the transition to mobile. Satya Nadella finally took the reins in 2014 and immediately changed the company’s focus from the Windows-centric, on-prem legacy businesses to a cloud-first platform that could be accessed and used from any (mobile) device anywhere in the world. He also made the decision to open the platform to third parties, such as Linux, even though it was likely to hurt Microsoft’s core Windows franchises. Nadella was willing to risk the high-margin on-prem business, recognizing that the world was going to change, and that cloud computing was going to be the future. This bold decision (and a massive multi-year investment) has reinvigorated the company and its stock, with Microsoft Azure, its cloud infrastructure business, surpassing $55 billion in annualized recurring revenue in the last quarter, while still growing 38% year-over-year. The price of Microsoft stock has increased seven-fold since Satya Nadella took over as CEO.”

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