Connect with us

Hi, what are you looking for?


Google-parent Alphabet dissolves stake in trading app Robinhood

Robinhood logo is seen on a smartphone in front of a displayed same logo in this illustration taken, July 2, 2021. REUTERS/Dado Ruvic/Illustration
Robinhood logo is seen on a smartphone in front of a displayed same logo in this illustration taken, July 2, 2021. REUTERS/Dado Ruvic/Illustration

On Monday, the company that owns Google, Alphabet (GOOGL.O), said that it had sold off its share in the company that operates Robinhood Markets (HOOD.O) trading software.

This revelation comes many months after Alphabet reduced its holdings in the firm by an amount equivalent to approximately 90% of its previous holdings. Following the completion of the sale, it held about 612,214 Robinhood shares.

It was believed that Alphabet invested in Robinhood while the latter was still an unlisted startup. At the time, Robinhood had won the hearts of retail traders with its transactions that did not incur commissions and its straightforward user interface.

As a result of the Federal Reserve’s rate rises in the previous year, the economic environment became cloudy, which caused the app to lose part of its allure as its consumer base chose to remain on the sidelines.

As a result of a decrease in trading activity, Robinhood was unable to meet the revenue expectations of Wall Street when it reported its profits for the third quarter of last year last week.

As Alphabet completes its divestment from Robinhood, the focus shifts to the future initiatives of the firm. Which businesses or market segments will be Alphabet’s top priority when investing, and how will this affect the broader technology ecosystem? There is a lot of conjecture going around, and market experts are watching Alphabet’s statements and actions very closely to forecast the next phase of the company’s strategic goals.

The sale of Alphabet’s interest in Robinhood’s cryptocurrency trading platform marks a watershed event at the junction of technology and finance. Due to this, Alphabet and Robinhood will have to deal with significant and diverse implications. This article comprehensively reviews the issue, including analyzing the strategic implications, market dynamics, and probable future scenarios.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.

You May Also Like


Two nonfiction writers filed a lawsuit against OpenAI and its financial supporter Microsoft (MSFT.O) on Friday in Manhattan federal court. They claim that the...


Nvidia has expanded its reach in China’s EV sector. Four Chinese electric car makers will utilize Nvidia’s technology to power autonomous driving systems, demonstrating...


In a federal court case in California, shareholders sued Netflix (NFLX.O.), alleging that the streaming entertainment business concealed how much account-sharing was impeding its...


With its most costly wager in over ten years, Apple (AAPL.O) said it would begin selling its Vision Pro mixed-reality headset in the US...