Alphabet Completely Exits Robinhood

Alphabet, the parent company of Google, has fully dissolved its stake in the stock trading app, Robinhood. This follows a significant reduction of its involvement, with the tech giant having already cut its stake by almost 90%.

A Bet on Retail Investing

Alphabet had made a substantial investment in Robinhood prior to the app’s public listing in 2021. The decision was driven by Robinhood’s promising position in the rising retail investment market. Robinhood had a strong start on the market, listing at $38 per share and quickly soaring to over $80 in the initial days of trading.

A Disappointing Performance

However, Robinhood’s performance has since stumbled. As of Monday, its shares were trading at just above eight dollars each. The company also recently underperformed against analysts’ third quarter revenue predictions. Both transaction revenue and monthly active user numbers were reported to be down.

In conclusion, Alphabet’s total divestment from Robinhood marks a notable shift for the tech giant, reflecting its changing investment strategies.