Opportunity Equity Weekly Update for 10/24/2025 – 10/31/2025

Illumina Jumps on a Beat and Raise While Meta Falls Despite Strong Earnings

Last week, the Opportunity Equity Strategy’s representative account fell -1.10%, underperforming the S&P 500’s 0.72% rise. (Exhibit 1). The strategy ended the week up 23.47% YTD, 595 basis points ahead of the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 10/31/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (10/24- 10/31)	-1.10%	0.72%
MTD	2.83%	2.34%
QTD	2.83%	2.34%
YTD	23.47%	17.52%
1 Year	29.72%	21.45%
5 Year	13.12%	17.64%
10 Year	10.68%	14.64%
Inception (annualized since 6/26/00)	8.38%	8.29%

Illumina, Inc. (ILMN) jumped after posting a beat and raise quarter, despite a challenged academic funding environment. The company delivered revenue of $1,084M vs $1,070M expected and adjusted EPS of $1.34 vs. $1.17 expected. Additionally, Illumina raised its FY25 adjusted EPS guidance to $4.70 at the midpoint, up from their previous guide and street estimate of $4.50. The company generated $253M in free cash flow and retired approximately 1.24M shares during the quarter (~1% of current shares outstanding). Illumina still has $684M remaining under its repurchase authorization and reaffirmed plans for opportunistic buybacks moving forward. Stephens increased their price target from $110 to $145 (17% upside) while Piper Sandler maintained their $185 price target (50% upside).

Alphabet Inc. (GOOGL) hit a new all-time high after posting revenue and earnings that exceeded expectations. The company delivered revenue of $87.5B vs. $85.1B expected and EPS of $2.87 vs. $2.27 expected. Google’s Search and Other segment generated $56.6 billion in revenue, up 14.5% year over year, reinforcing the strength of its core business and easing concerns about AI-related headwinds. Google Cloud revenue reached $15.2 billion, reflecting 33.5% y/y growth and a ~180 bps q/q acceleration, well ahead of consensus expectations for a ~180 bps deceleration. Alongside its revenue acceleration, the segment posted record operating income of $3.6 billion versus $2.9 billion expected and achieved 23.7% operating margins, a 300-bps expansion from the prior quarter. Finally, the company raised its FY25 capital expenditure guidance to $92 billion at the midpoint, up from $85 billion, and reaffirmed plans for aggressive investment in cloud and AI to meet robust demand. Wolfe increased their price target from $290 to $350 (24% upside). 

Amazon.com, Inc. (AMZN) climbed through its 50-day moving average and reached a new all-time high after announcing a top and bottom line beat as well as AWS acceleration. The company delivered revenue of $180B vs. $178B expected and EPS of $1.95 vs. $1.56 expected. AWS printed $33B in revenue ($132B annualized run rate), up 20% year-over-year with 300 bps of sequential growth acceleration, marking its fastest-growing quarter in almost 3 years despite having the largest revenue base. The company also saw double-digit revenue growth across its retail and advertising segments. Evercore reiterated the name as their number one large-cap idea and increased their price target from $254 to $335 (37% upside). 

Nvidia Corp (NVDA) reached a new all-time high after CEO, Jensen Huang, spoke at the GPU Technology Conference in D.C. Huang announced new AI partnerships with CoreWeave, Alphabet, Microsoft, Oracle, Uber, and xAI, as well as Physical AI collaborations with Siemens, CAT, and Toyota. He also noted that the company already has $500B in 2026 bookings between Blackwell and Rubin, 12% above Street estimates for CY26 cumulative data center revenue.

Citigroup Inc. (C) rose after announcing a partnership with Coinbase Global, Inc. (COIN), to simplify digital asset payments for institutional clients, with plans to integrate stablecoin conversion and other crypto solutions in the future.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 10/24/25 - 10/31/2025

Name	Type	Net Return
Illumina, Inc.	Equity	23.4%
Alphabet Inc.	Equity	8.2%
Amazon.com, Inc.	Derivative	8.9%
Nvidia Corp	Equity	8.7%
Citigroup Inc.	Equity	2.5%

Meta Platforms, Inc. (META) fell through their 100-day and 200-day moving averages despite announcing earnings which exceeded expectations and guiding 4Q25 revenue to $57.5B at the midpoint (19% y/y), slightly above street estimates. The company delivered revenue of $51.2B versus $49.6B expected and adjusted EPS of $9.41 vs $8.43 expected. Management guided for capital expenditure growth to be “notably larger in 2026 than 2025” along with total expenses expected to rise “at a significantly faster percentage rate” next year, driven primarily by higher infrastructure, cloud, and depreciation costs. UBS increased their price target from $900 to $915 (41% upside)  while Loop Capital maintained their $980 price target (51% upside).

UnitedHealth Group (UNH) fell through the 50-day moving average despite delivering a beat and raise quarter. The company delivered revenue of $113.2B vs. $113.0B expected, EPS of $2.59 vs. $2.44 expected, and increased FY25 EPS guidance from above $14.65 to above $14.90. Optum Health, the company’s healthcare delivery segment, remains under pressure, posting an adjusted EBIT margin of 1.0%, missing consensus by 110 bps and -730 bps year-over-year. UBS raised its price target from $378 to $430 (26% upside), citing increased confidence in management’s ability to achieve sustainable earnings growth from 2027 onward.

Dave & Buster’s Entertainment, Inc. (PLAY) hit a new 52-week low after Moody’s downgraded its corporate debt rating from B2 to B3, citing high leverage, weak same-store sales trends, and soft discretionary spending. Moody’s noted, however, that liquidity remains adequate with no near-term maturities and strong revolving credit availability.

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

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 10/24/2025 - 10/31/2025

Name	Type	Net Return
New Security*	Equity	-46.8%
Meta Platforms, Inc.	Equity	-12.2%
UnitedHealth Group	Equity	-5.8%
Dave & Buster's Entertainment, Inc.	Equity	-15.9%
Precigen, Inc. Warrant 2034	Derivative	-6.3%

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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. 

*Entered into position intra quarter. Security holding not yet publicly disclosed. 

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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