Biogen Rises on Earnings Beat While Hyperscalers Fall on CAPEX Concerns
Last week, the Opportunity Equity Strategy’s representative account fell -1.44%, underperforming the S&P 500’s -0.09% decline. (Exhibit 1). The strategy ended the week up 1.02% YTD, -34 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 2/06/261
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (1/30- 2/06) | -1.44% | -0.09% |
| MTD | -1.44% | -0.09% |
| QTD | 1.02% | 1.36% |
| YTD | 1.02% | 1.36% |
| 1 Year | 23.27% | 15.42% |
| 5 Year | 3.66% | 13.92% |
| 10 Year | 14.88% | 15.92% |
| Inception (annualized since 6/26/00) | 8.48% | 8.27% |
Source: Bloomberg, Patient Capital Management.
Royalty Pharma plc (RPRX) reached a new 52-week high ahead of earnings.
United Airlines Holdings, Inc. (UAL) recaptured its 50-day and 100-day moving averages. Citi increased their price target from $153 to $155 (34% upside). Citi expects United to beat consensus next quarter, citing conservative guidance and stabilizing trends in their proprietary data.
Biogen Inc. (BIIB) hit a new 52-week high announcing strong earnings that beat on the top and bottom line. The company delivered revenue of $2.3B vs. $2.2B expected and adjusted EPS of $1.99 vs $1.55 expected. Management highlighted several pipeline readouts in 2026-2027 and said they might consider a share buyback given balance sheet strength. Oppenheimer increased their price target from $225 to $250 (24% upside).
Citigroup Inc. (C) moved higher and Norwegian Cruise Line Holdings Ltd. (NCLH) climbed through its 100-day moving average on limited news.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 1/30/2026 - 2/6/2026
| Name | Type | Net Return |
| Citigroup Inc. | Equity | 6.6% |
| Royalty Pharma plc | Equity | 7.1% |
| United Airlines Holdings, Inc. | Equity | 13.3% |
| Biogen Inc. | Equity | 11.8% |
| Norwegian Cruise Line Holdings Ltd. | Equity | 6.2% |
Source: Patient Capital Management. See below for additional information.
Amazon.com, Inc. (AMZN) fell through its 50-day, 100-day, and 200-day moving averages after announcing earnings. The company delivered revenue of $213.4B (14% y/y) vs. $211.5B expected and a slight EPS miss of $1.95 vs. $1.96 expected. Amazon Web Services (AWS) generated $35.6B in revenue (24% y/y), recording its fastest sales acceleration in over four years. The surprise came from FY26 CAPEX guidance of $200B (+52% y/y) versus $147B expected. Wells Fargo maintained its $300 price target (43% upside), citing their expectations for AWS acceleration into 2027 and meaningful progress in Amazon’s grocery business.
Illumina, Inc. (ILMN) dropped beneath its 50-day moving average after announcing an earnings beat alongside mixed guidance. The company posted revenue of $1,159M versus $1,115M expected and EPS of $2.16 versus $1.23 expected. However, Illumina issued softer-than-expected 1Q26 revenue guidance of 1–3% growth versus 2.3% expected and an FY26 adjusted operating margin target of 23.3%–23.5% versus 23.8% expected. Offsetting this, FY26 revenue guidance of $4.5–$4.6B exceeded the Street’s $4.4B estimate. Piper Sandler lowered its price target to $170 from $195 (42% upside) while maintaining a Buy rating.
Like Amazon, Alphabet Inc. (GOOGL) fell after announcing strong earnings with a CAPEX surprise. The company printed revenue of $113.8B (18% y/y) vs. $111.3B expected and EPS of $2.82 vs. $2.63 expected. Alphabet’s cloud segment posted revenue of $17.7B (48% y/y) vs. $16.3B expected with operating margins of 30.1% vs. 22.7% expected. FY26 CAPEX guidance came in at $175-$185B, roughly double FY25’s spend and well above the Street’s $121B estimate. Goldman Sachs increased their price target from $375 to $400 (24% upside).
Meta Platforms, Inc. (META) broke below its 100-day and 200-day moving averages and fell in sympathy with Amazon and Alphabet. Meta reported strong earnings and a CAPEX surprise the week prior.
Coinbase Global, Inc. (COIN) reached a new 52-week low, following bitcoin’s -15% decline.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 1/30/2026 - 2/06/2026
| Name | Type | Net Return |
| Amazon.com, Inc. | Equity | -12.1% |
| Illumina, Inc. | Equity | -17.3% |
| Alphabet Inc. | Equity | -4.5% |
| Meta Platforms, Inc. | Equity | -7.7% |
| Coinbase Global, Inc. | Equity | -14.9% |
Source: Patient Capital Management. See below for additional information.
1The performance figures for the representative Opportunity Equity account reflect the deduction of investment management fees and certain other expenses. For additional information about Opportunity Equity Strategy performance, please click on the Opportunity Equity Strategy Composite Performance.
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.
©2026 Patient Capital Management, LLC
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