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Alphabet, the parent company of Google, said it had reduced its stake in trading app operator Robinhood Markets by nearly 90%.
According to an SEC filing, Alphabet reduced its exposure to Robinhood Market by 90%.
Google-Parent Company Dumps Robinhood Stock
Alphabet cut its exposure to Robinhood Markets by nearly 90% as Robinhood experiences difficulties with a slowdown in its business. According to reports by Reuters, Alphabet invested in the trading app operators when it was still an unlisted startup. The company reportedly held over 4.9 million Robinhood shares by the end of 2021.
Robinhood shares peaked in August 2021, and soon after its IPO, Alphabet’s stake was worth approximately $419 million.
Since reaching their high in 2021, Robinhood’s shares have dropped 86%. The company has struggled since its IPO after seeing a massive user surge during the pandemic.
Robinhood has, however, been very involved in the memecoin frenzy and retail trading outrage at payment for order flow, CNBC reports.
Robinhood recorded a profit last week for the first time since becoming a public company.
Robinhood Undertakes Third Round of Layoffs in a Year
The famous online brokerage firm announced in June that it would lay off around 150 full-time employees, around 7% of its workforce.
The most recent wave of job cuts marks Robinhood’s third round in just over a year, reflecting the company’s struggles with ongoing market fluctuations.
The company further recorded a 30% loss in Q1 2023. The trading app said its crypto business brought in $38 million in Q1, down 30% from $54 million in Q2 2022.
Robinhood struggles have been exacerbated after the SEC sued Binance and Coinbase and alleged specific crypto tokens were securities. In the days following the lawsuits, Robinhood removed Solana, Cardano, and Polygon from its platform.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.