Alphabet, the parent company of Google, disclosed on Monday that it has divested its stake in Robinhood Markets, the trading app operator. This decision follows Alphabet’s earlier move to significantly reduce its investment in Robinhood, cutting its stake by almost 90%. As of the reduction, Alphabet retained approximately 612,214 shares in Robinhood.
Alphabet Financial Maneuvers
Alphabet’s initial foray into Robinhood occurred during the early stages of the app’s development when it was an unlisted startup. At that juncture, Robinhood had garnered favor among retail traders for its commission-free trades and user-friendly interface. However, as economic uncertainties unfolded, exacerbated by the Federal Reserve’s rate hikes last year, Robinhood witnessed a diminishing allure. The platform’s user base opted to remain on the sidelines, contributing to a notable deceleration in trading activities.
The latest third-quarter earnings report from Robinhood revealed a shortfall in revenue compared to Wall Street estimates. This underperformance was attributed to the slowdown in trading, reflecting the evolving dynamics of the market.
Read More (Tech)
