Opportunity Equity Weekly Update for 7/25/2025 – 8/1/2025

Meta Climbs on Strong Earnings while UnitedHealth Slips on Weak Guidance

Last week, the Opportunity Equity Strategy’s representative account fell -5.21%, underperforming the S&P 500’s -2.34% fall. (Exhibit 1). The strategy ended the week up 6.53% YTD, 32 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 8/1/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (7/25- 8/1)	-5.21%	-2.34%
MTD	-3.71%	-1.60%
QTD	1.67%	0.61%
YTD	6.53%	6.85%
1 Year	22.56%	16.06%
5 Year	10.46%	15.51%
10 Year	8.15%	13.48%
Inception (annualized since 6/26/00)	7.83%	7.97%

Meta Platforms, Inc. (META) reached a new all-time high last week after announcing strong earnings that beat expectations across the board. The company posted revenue of $48B (up 22% y/y) versus $45B expected, operating margins of 43% versus 38% expected, and EPS of $7.14 (up 38% y/y) versus $5.89 expected. The company also repurchased $9.8B in stock during the quarter (0.5% of its current market cap). On the earnings call, Zuckerberg credited strong advertisement performance to advances in their AI-powered recommendation model. FY25 CAPEX guidance was raised slightly from $78B to $79B at the midpoint. Zuckerberg emphasized continued investment in AI, particularly to enhance platform engagement, business messaging, Meta AI assistant, and AI devices. Evercore raised its price target from $750 to $930 (24% upside). Evercore remains bullish on Meta’s ability to generate strong free cash flow, even amid its current investment cycle. Evercore also sees untapped long-term monetization potential in Threads, Meta AI, WhatsApp, and Facebook Marketplace.

Norwegian Cruise Line Holdings Ltd. (NCLH) rose after reporting inline earnings and reaffirming its FY25 guidance above Street expectations. The company posted revenue of $2.5B, adjusted EPS of $0.51, and maintained its FY25 adjusted EPS guidance of $2.05. Management emphasized record bookings in Q2 and strong demand across all three of the company’s brands. JP Morgan increased their price target from $28 to $39 (59% upside). They view NCLH as an attractive setup, supported by a strong bookings curve, a cost savings program, and ongoing investments to drive future growth in the Caribbean.

Precigen, Inc. (PGEN) rose on limited news.

CVS Health (CVS) broke above its 100-day moving average after a beat-and-raise earnings report, setting itself apart from the broader struggles in the managed care sector. The company delivered revenue of $99B versus. $95B expected and adjusted EPS of $1.81 versus $1.46 expected. CVS broadly raised its FY25 guidance, with revenue increasing from $382.6B to $391.5B, operating cash flow from $7B to over $7.5B, and adjusted EPS from $6.10 to $6.35 at the midpoint. TD Cowen increased their price target from $95 to $99 (58% upside).

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 7/25/25 - 8/1/2025

Name	Type	Net Return
Meta Platforms, Inc.	Equity	5.2%
Norwegian Cruise Line Holdings Ltd.	Equity	2.8%
Precigen Warrant Restricted	Equity	8.1%
CVS Health Corp	Equity	2.9%
Precigen, Inc.	Equity	6.4%

QXO, Inc. (QXO) and Dave & Buster's Entertainment, Inc. (PLAY) both fell through their respective 50-day moving averages on limited news.

UnitedHealth Group (UNH) reached a new 52-week low after announcing inline revenue, an earnings miss, and lower than expected FY25 guidance. The company printed revenue of $112B and adjusted EPS of $4.08 versus $4.59 expected. UnitedHealth reinitiated their FY25 outlook, guiding for revenue between $445.5B to $448B versus $449B expected, and adjusted EPS of $16 versus $20 to $21 expected. Cantor Fitzgerald maintained its $440 price target (85% upside) and “Overweight” rating. Cantor believes the company issued conservative guidance to enable an easy beat-and-raise and remains bullish on UnitedHealth’s long-term outlook, expecting a return to mid-teens EPS growth beyond 2027.

Coinbase Global, Inc. (COIN) fell below its 50-day moving average after missing both revenue and earnings expectations. The company reported revenue of $1.5B versus $1.6B expected, and adjusted EPS of $0.12 versus $1.30 expected. Cantor maintained its $500 price target (59% upside) and “Overweight” rating, highlighting $360M in July trading volume compared to $764M for all of Q2. Cantor sees a long runway for Coinbase, calling out several growth opportunities, including its stablecoin business, the rebranded “Base” app to drive user adoption, expanded access into the crypto derivatives market, and recent partnerships with PNC Bank and JPMorgan.

Amazon.com, Inc. (AMZN) fell through the 50-day moving average despite announcing earnings that beat on the top and bottom line. Revenue came in at $168B versus $162B expected (up 12% y/y), and EPS was $1.68 versus. $1.32 expected (up 33% y/y). However, the stock declined on weaker-than-expected Amazon Web Services (AWS) results. While AWS's year-over-year revenue growth accelerated modestly from Q1, its operating margin dropped from 39% to 33%. Management attributed AWS's modest topline growth to capacity constraints, primarily related to power, but noted a 25% y/y increase in its backlog. CEO Andy Jassy highlighted that 85%–90% of global IT spend remains on-premises rather than in the cloud. JP Morgan raised its price target from $255 to $265 (23% upside), citing Amazon’s leadership in e-commerce and cloud, two early-stage markets with significant growth potential.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 7/25/2025 - 8/1/2025

Name	Type	Net Return
QXO, Inc.	Equity	-12.9%
UnitedHealth Group	Equity	-15.0%
Coinbase Global, Inc.	Equity	-19.7%
Amazon.com, Inc.	Equity	-7.2%
Dave & Buster's Entertainment, Inc.	Equity	-14.4%

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As of prior week's market close unless otherwise stated.

¹The performance figures for the representative Opportunity Equity account reflect the deduction investment management fees and certain other expenses. Returns greater than 1 year are annualized.

For additional information about Opportunity Equity Strategy performance, please click on the Opportunity Equity Strategy Composite Performance Disclosure. Past performance is no guarantee of future results.

²Significant Contributors and Detractors are based on holdings that had the greatest effect on representative account performance for the week. Holdings that have been in the portfolio since the end of the most recent calendar quarter are identified by name. The net return shown above for each individual security represents the change in market price of the security during the week, according to a third-party pricing service, or for the partial period held in the portfolio during the week.  Net returns also include any purchases or sales that were made during the week. For information on how Contributor/Detractor data were calculated and a list showing the contribution to the Strategy’s weekly performance of each investment held at such quarter end, contact us.

Any views expressed are subject to change at any time, and Patient Capital Management disclaims any responsibility to update such views. There is no guarantee that market trends discussed herein will continue. The information presented should not be considered a recommendation to purchase or sell any security and should not be relied upon as investment advice. It should not be assumed that any purchase or sale decisions will be profitable or will equal the performance of any security mentioned. Past performance is no guarantee of future results, and there is no guarantee dividends will be paid or continued. References to specific securities are for illustrative purposes only. Portfolio composition is shown as of a point in time and is subject to change without notice. Content may not be reprinted, republished or used in any manner without written consent from Patient Capital Management. 

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