GOOG·Alphabet Inc.

Federal charges against three engineers for allegedly stealing Google trade secrets for Iran are the most recent development. The stolen data includes sensitive information on processor security and cryptography, which could undermine Google's competitive advantage. This situation presents a potential risk to Google's intellectual property. Separately, Saudi Arabia's Public Investment Fund invested $3 billion in Elon Musk's xAI, which may strengthen strategic partnerships. Google is an early investor in SpaceX, and this investment could indirectly impact Google through its stake in SpaceX. In contrast, Coatue Management reduced its GOOG holdings, shifting towards streaming and e-commerce companies. This move, which contrasts with the firm's usual tech focus, suggests a potential repositioning away from certain tech sectors. The rationale behind this portfolio adjustment remains unclear, but it could signal a change in outlook for GOOG. Investors should watch for further developments in the legal case and any strategic partnerships that may arise from the xAI investment.