(Reuters) -Google-parent Alphabet has cut its stake in trading app Robinhood Markets by nearly 90%, a regulatory filing showed on Friday.
The disclosure comes days after Robinhood said it had achieved profitability for the first time as a public company in the second quarter.
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Robinhood has been struggling to regain its footing after emerging as the breakout financial technology app during the pandemic, when several retail traders were drawn to its platform because of its commission-free trades and easy-to-use interface.
However, the Federal Reserve’s tightening cycle last year hammered equities, especially high-flying tech stocks in which there was a lot of retail interest, denting Robinhood’s business.
Robinhood shares have lost 86% since hitting their peak in August 2021.
Alphabet had around 612,214 shares in Robinhood as of June 30, compared with 4.9 million shares in the previous quarter.
As of Robinhood’s last close on Thursday, Alphabet’s stake would be worth just about $7 million, according to Reuters calculations.
(Reporting by Niket Nishant in Bengaluru; Editing by Nivedita Bhattacharjee and Anil D’Silva)
By: OAN
