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Alphabet, Parent Company Of Google, Sells About 90% Of Its Robinhood Stock

Alphabet, Parent Company Of Google, Sells About 90% Of Its Robinhood Stock
Days after the trading app announced it had made a profit for the first time as a publicly traded firm, Google parent company Alphabet announced that it had reduced its ownership position in Robinhood Markets by almost 90%.
The breakout financial technology app during the pandemic, when countless retail traders were enticed to its platform because to its commission-free transactions and user-friendly layout, has been battling to regain its footing.
The tightening cycle of the Federal Reserve last year hurt stocks, particularly high-flying tech stocks in which there was a lot of retail interest, which hurt Robinhood's operations.
The company's stock has dropped 86% since peaking in August of the same year, when its trading platform became the focus of a meme stock craze.
According to Refinitiv statistics, Robinhood announced earlier this week that it had earned 3 cents per share in the second quarter when analysts were anticipating a loss of 1 cent.
However, as retail traders continued to exercise caution due to the uncertain market circumstances, the number of monthly active users at the platform fell to 10.8 million, down 3.2 million from the previous year and down one million from the first quarter.
The Menlo Park, California-based company Robinhood is seeking for new revenue sources to offset this decline in its core trading business.
It decided to pay roughly $95 million to acquire the credit card and financial technology company X1 in June.
According to Alphabet's regulatory filing, it had 612,214 shares of Robinhood as of June 30 as opposed to 4.9 million shares during the first quarter that concluded on March 31.
According to calculations, Alphabet's investment would be worth little under $7 million as of Thursday's closing closure on Robinhood.

Christopher J. Mitchell

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