Crocs Rises on Strong Earnings While Alphabet Falls on Search Weakness
Last week, the Opportunity Equity Strategy’s representative account gained 1.18%, outperforming the S&P 500’s -0.56% loss. (Exhibit 1). The strategy ended the week up 12.32% YTD, 50 basis points ahead of the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 10/30/261
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (10/23-10/30) | 1.18% | -0.56% |
| MTD | -2.32% | -0.87% |
| QTD | -2.32% | -0.87% |
| YTD | 12.32% | 11.77% |
| 1 Year | 18.36% | 12.41% |
| 3 Year | 33.29% | 23.67% |
| 5 Year | 8.15% | 12.06% |
| 10 Year | 13.83% | 15.44% |
| Inception (annualized since 6/26/00) | 8.67% | 8.44% |
Source: Bloomberg, Patient Capital Management.
Crocs, Inc. (CROX) surged above its 50-day and 100-day moving averages to a new 52-week high following a beat-and-raise quarter. The company printed revenue of $1,043M vs. $1,004M expected and EPS of $3.69 vs. $3.31 expected. Crocs also raised its FY26 revenue growth guidance from 1–2% to over 3% and its EPS guidance from $13.85 to $14.55 at the midpoint. The company continued to buy back stock, retiring 2 million shares in the third quarter (~4% shares outstanding). Needham raised its price target from $150 to $190 (26% upside), encouraged by HeyDude’s first quarter of growth since Q2 2023, a 12% increase in international sales, and continued margin expansion. Precigen, Inc. (PGEN) climbed above its 100-day moving average on limited news.
Norwegian Cruise Line Holdings Ltd. (NCLH) broke above its 50-day and 100-day moving averages following a beat-and-raise quarter. The company generated revenue of $2.95B vs. $2.88B expected and adjusted EPS of $1.12 vs. $0.93 expected. Additionally, Norwegian raised its FY26 adjusted EPS guidance from $1.50 to $1.70 and projected FY27 net yield growth of 1–2%, supported by improving bookings and higher pricing. Stifel increased its price target from $22 to $24 (37% upside), pointing to early signs of a turnaround, with stronger pricing and cost reductions expected to improve profitability.
Global Payments Inc. (GPN) rallied above its 50-day moving average to a new 52-week high following a Financial Times report that Clayton, Dubilier & Rice (CD&R) is in talks to potentially take the company private.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 10/23/2026 - 10/30/2026
| Name | Type | Net Return |
| Crocs, Inc. | Equity | 26.2% |
| Precigen, Inc. Warrant 2034 | Derivative | 11.3% |
| Norwegian Cruise Line Holdings Ltd. | Equity | 16.4% |
| Global Payments Inc. | Equity | 16.9% |
| Precigen, Inc. | Equity | 12.1% |
Source: Patient Capital Management. See below for additional information.
Alphabet Inc. (GOOGL) declined following an earnings miss. The company generated revenue of $127.6B (+25% y/y) vs. $128.0B expected and EPS of $2.12 vs. $3.02 expected. Google Cloud revenue reached $30.7B (+103% y/y) vs. $28.8B expected, while Search revenue came in below expectations at $63.4B (+12% y/y) vs. $65.0B expected. Guidance added uncertainty, including increased currency headwinds, moderating Search growth against a difficult prior year comparison, and near-term pressure on Cloud margins from reliance on third-party computing infrastructure. Management’s expectations for a significant increase in capital expenditures (CAPEX) next year added to investor concerns, weighing on shares. RBC lowered its price target from $425 to $400 (43% upside) to reflect reduced Search revenue expectations but maintained its Outperform rating, pointing to Alphabet’s ability to reinvest strong free cash flow from its core Search business into adjacent markets with long-term growth potential. Adyen N.V. (ADYEN NA) fell below its 100-day moving average following mixed results. The company printed 3Q net revenue of €738M vs. €730M expected but guided FY26 EBITDA margins to 50.0%, below the Street’s 51.9% estimate. Additionally, Adyen withdrew its FY28 EBITDA margin target of 55%. Goldman Sachs lowered its price target from €1,750 to €1,600 (93% upside) to reflect reduced margin expectations. However, Goldman Sachs reiterated its Buy rating, supported by strong customer growth, continued market share gains, and opportunities to expand payment and financial services offerings to existing customers.
Coinbase Global, Inc. (COIN) fell after announcing mixed earnings. The company delivered in line revenue of $1.2B and EBITDA of $333M vs. $282M expected. Coinbase sees 4Q26 subscription and service revenues of $$590M at the midpoint, below the Street’s $615M estimate. Shares were pressured by the weaker outlook, headlines surrounding the Binance hack, and a 5.6% decline in Bitcoin. Canaccord lowered its price target from $300 to $275 (92% upside) while maintaining its Buy rating. Canaccord reduced its estimates to reflect a softer macroeconomic environment but remains optimistic about improving profitability from a leaner cost base and crypto trading market share gains. Additionally, prediction markets surpassed a $200M revenue run rate, providing another source of diversified revenue.
JPMorgan maintained its $35 price target (25% upside) on Chime Financial Inc. (CHYM) ahead of its earnings release.
Adobe Inc. (ADBE) broke below its 50-day and 200-day moving averages on limited news.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 10/23/2026 - 10/30/2026
| Name | Type | Net Return |
| Alphabet Inc. | Equity | -12.6% |
| Adyen N.V. | Equity | -12.9% |
| Coinbase Global, Inc. | Equity | -12.7% |
| Chime Financial Inc | Equity | -5.5% |
| Adobe Inc. | Equity | -5.2% |
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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