HomeFinancial MarketsAlphabet Sells Almost 90% of its Stake in Robinhood

Alphabet Sells Almost 90% of its Stake in Robinhood

Alphabet, the parent company of Google, parted ways with almost 90% of its stake in the trading app Robinhood, according to a recent filing with U.S. Securities and Exchange Commission (SEC). The tech giant also reduced its stakes in several other entities, including biotech company 23andMe and language learning app Duolingo.

Alphabet initially invested in Robinhood during the trading platform’s startup days and held close to 4.9 million shares back in March. After ditching most of its holdings, the company’s stake in Robinhood is now down to 612,214 shares, which are worth around $7 million.

In a recent earnings release, Robinhood announced it had recorded its first profitable quarter since going public. However, the company is struggling to keep active users on its app, having 10.8 million monthly active users in Q2 compared to 11.8 million in Q1. The number is also significantly down from almost 14 million monthly active users in the same period last year.

Robinhood’s Chief Financial Officer Jason Warnick acknowledged weakening trading activity during an earnings call but said that the company is aiming to counter it by finding “new revenue streams.”

Robinhood’s shares dropped 2.25% on Friday, closing at $11.28. The company’s stock is still almost 40% up year to date.

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