In a surprising move that signals a strategic shift in tech investment priorities, Alphabet Inc. has made a dramatic portfolio pivot, diving into satellite-powered telecom through AST SpaceMobile while nearly exiting its sizable position in AI cybersecurity firm CrowdStrike.
These decisions, unveiled in the latest Form 13F filing, highlight how evolving technology trends, valuation concerns, and market volatility are reshaping how major players like Alphabet deploy capital. A trading strategist from Bitnixer, Victor Belov, explores the deeper implications of this shift—from low-Earth orbit ambitions to AI rebalancing—and what it may reveal about long-term conviction and near-term caution.
AST SpaceMobile Becomes Alphabet’s Third-Largest Holding
According to the March quarter Form 13F, Alphabet purchased 8.94 million shares of AST SpaceMobile, instantly making it the third-largest position in its investment portfolio, accounting for roughly 12.9% of total invested assets.
This bold stake in AST comes amid a 562% year-over-year surge in the company’s stock price, a reflection of investor enthusiasm for its mission to deliver space-based cellular connectivity using standard smartphones. The vision: deploy a constellation of 155 next-gen satellites by 2030 to ensure universal coverage, particularly in underserved and remote regions.
What makes AST SpaceMobile’s model stand out is that its satellites don’t require specialty hardware, unlike earlier projects like Iridium Communications. Instead, the system will integrate directly with existing smartphones, opening the door to 2.5 billion potential end-users via partnerships with over 40 global mobile network operators, including major U.S. telecom firms.
Growth vs. Cost: A Moonshot with Earthly Risks
Wall Street’s forecast is ambitious: revenues are expected to surge from just $4.42 million in 2024 to over $3 billion by 2028, with recurring profitability targeted for 2027. But the journey to profitability comes with challenges. Each satellite now costs an estimated $21–$23 million to produce, up from initial estimates of $20 million, due largely to increased material expenses tied to tariff policy changes implemented by America’s current administration.
Alphabet’s sizable investment may be driven by the opportunity to gain early exposure to disruptive infrastructure tied to global data accessibility, but it also carries significant capital intensity and dilution risks if AST fails to scale cost-effectively.
CrowdStrike Stake Slashed by 83%
While Alphabet’s interest in satellites is growing, its conviction in CrowdStrike has sharply declined. Once the second-largest holding in Alphabet’s portfolio, the AI-driven cybersecurity stock has seen 94% of its stake sold off over five quarters. Most notably, the company reduced its holding by 353,665 shares during Q1 2025 alone, down to just 74,230 shares.
Three potential explanations for this exit emerge:
- Profit-Taking: Alphabet accumulated its CrowdStrike position in late 2022 when shares traded in the low $100s. Much of the selling occurred as the stock soared to $300–$400, offering substantial gains.
- Valuation Concerns: With a current price-to-sales ratio near 23 and trading at 127 times forecast earnings, CrowdStrike’s premium valuation leaves little room for missteps, particularly in a volatile tech market.
- Reputational Risk: A major Falcon platform update error in July 2024 caused a temporary disruption for Windows users globally. Though resolved, the incident may have triggered investor hesitation about operational reliability.
Cybersecurity Still a Critical Sector
Despite Alphabet’s sharp divestment, the case for CrowdStrike isn’t entirely closed. The company remains a leader in a sector that has evolved into a non-negotiable necessity. As enterprise data moves to the cloud, the need for third-party security services continues to rise.
CrowdStrike’s business model also remains solid. Nearly half of its customers now subscribe to at least six different cloud-based modules, contributing to a robust 80% adjusted subscription margin. Analysts still expect 21% year-over-year revenue growth, with earnings forecasts showing continued expansion.
Alphabet’s move may reflect timing and portfolio balance rather than a loss of confidence in cybersecurity’s long-term viability.
Alphabet’s Broader Strategy: Shift Toward Infrastructure and Emerging Tech
Alphabet’s investment shift may signal a broader recalibration—away from high-valuation, high-expectation tech and toward early-stage, infrastructure-centric ventures. AST SpaceMobile offers a unique combination: long-term impact potential, deep global partnerships, and alignment with Alphabet’s mission of universal access to information.
Meanwhile, CrowdStrike’s exit could reflect a desire to lock in gains and reduce exposure to overvalued growth stocks vulnerable to market rotation or regulatory headwinds.
It’s also worth noting that Alphabet remains active in its core operations, maintaining dominance in search (with an 89.66% global market share as of April) and expanding Google Cloud, a segment that’s seen strong AI-related demand and improving margins.
Conclusion: A Strategic Realignment Rooted in Risk and Reward
Alphabet’s dramatic shift—from backing a mature, revenue-generating AI leader to funding a high-risk, high-reward space telecom startup—illustrates the evolving calculus behind institutional tech investing. With $1.58 billion spread across 40 holdings, the company is diversifying beyond its search and cloud backbone into frontier technologies that could shape the next digital era.
Whether AST SpaceMobile delivers on its promise or faces setbacks tied to capital costs and geopolitical friction, Alphabet’s bet reveals a renewed appetite for moonshot thinking in real-world infrastructure.
