In an evolving landscape where efficiency and talent optimization are becoming paramount, Netflix Inc‘s (NASDAQ:NFLX) remarkable revenue per employee sets it apart and shifts the market’s focus to the untapped potential of human capital. This challenges traditional metrics of company valuation, prompting investors to reassess the importance of workforce quality in driving future growth.
Netflix had the highest revenue per full-time equivalent (FTE) among the nine big-cap companies in coverage, according to Needham.
The Netflix Analyst: Analyst Laura Martin maintained a Buy rating, while raising the price target from $1,126 to $1,500.
The Netflix Thesis: The quality of a company's employee base "is a key asset and upside value driver," Martin said in the note.
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Netflix recorded FTE of $2.78 billion in fiscal 2024, meaningfully higher than Apple Inc (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META) and Alphabet Inc (NASDAQ:GOOGL), the analyst stated.
"In total, NFLX reported nearly 2x higher average rev/FTE compared with the 9 big cap companies we cover," she further wrote.
The revenue and earnings estimates for fiscal 2026 have been raised from $49.07 billion to $49.89 billion and from $29.61 per share to $31.03 per share, respectively, Martin said.
NFLX Price Action: Netflix shares were down 0.29% at $1247.03 at the time of publication Friday, according to Benzinga Pro.
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