Alphabet, the parent company of Google, announced on Monday that it has completely divested its stake in the trading app operator, Robinhood Markets.
This disclosure follows Alphabet’s earlier significant reduction of its stake in the company by nearly 90%, leaving it with approximately 612,214 Robinhood shares.
Alphabet had initially invested in Robinhood when it was an unlisted startup, gaining attention from retail traders for its commission-free trades and user-friendly interface.
However, as economic conditions became uncertain due to Federal Reserve rate hikes last year, Robinhood lost some of its appeal, with its customer base becoming less active.
In the third-quarter earnings report released last week, Robinhood fell short of Wall Street revenue estimates, influenced by a slowdown in trading.