Alphabet, the parent company of Google, has significantly reduced its stake in Robinhood Markets by almost 90%, as revealed in SEC filings. The trading app operator has been facing challenges with a slowdown in its main business. Previously, Alphabet had invested in Robinhood when it was still an unlisted startup, holding over 4.9 million shares by the end of 2021.
At its peak in August 2021, Robinhood shares were valued at $85, and Alphabet’s stake was worth nearly $419 million. However, after the recent sale, Alphabet now owns 612,214 shares, valued at approximately $7 million based on Reuters’ calculations. Robinhood shares have since dropped by 86% from their record levels as of August 3.
In addition to reducing its stake in Robinhood, Alphabet has also trimmed significant positions in Duolingo and 23andMe. The company sold about 523,000 shares of Duolingo and previously held more than 6.7 million shares of 23andMe.
Robinhood, once a popular app among retail traders due to its commission-free trades and user-friendly interface, has been facing challenges following the meme stock frenzy and the Federal Reserve’s tightening cycle. These factors have impacted the company’s performance, especially in the highly volatile technology sector.