Saturday, June 15, 2024

Artificial Intelligence news

How to opt out...

MIT Technology Review’s How To series helps you get things done.  If you...

Apple is promising personalized...

At its Worldwide Developer Conference on Monday, Apple for the first time...

What using artificial intelligence...

This story originally appeared in The Algorithm, our weekly newsletter on AI....

The data practitioner for...

The rise of generative AI, coupled with the rapid adoption and democratization...
HomeTechnologyGoogle parent Alphabet...

Google parent Alphabet dumps 90% of its stake in Robinhood


Google parent Alphabet said Friday it had slashed its stake in Robinhood Markets by nearly 90%, cutting its exposure to the trading app operator that has been grappling with a slowdown in its mainstay business.

Alphabet had reportedly invested in Robinhood when the latter was an unlisted startup, and it held over 4.9 million shares in the company as of the end of 2021.

That stake was worth nearly $419 million when Robinhood shares hit their peak of $85 in August 2021, just a month after the initial public offering.

Following the sale, Alphabet now owns 612,214 shares in the company, worth about $7 million, according to Reuters calculations.

As of Thursday, Robinhood shares have dropped 86% from their record levels.

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.


Robinhood has been struggling to regain its footing after emerging as the breakout financial technology app during the pandemic.
REUTERS

The company’s platform also played a major role in fostering a meme stock frenzy in January 2021, when several traders banded together on social media to push up the value of highly shorted stocks like GameStop.

But the Federal Reserve’s tightening cycle last year hammered shares, especially those of high-flying technology companies in which there was a lot of retail interest, denting Robinhood’s business.

Earlier this week, Robinhood said it had turned a profit for the first time as a public company, surprising Wall Street, which was expecting a small loss.


Google sign
Alphabet had reportedly invested in Robinhood when the latter was an unlisted startup.
REUTERS

However, as retail traders stayed cautious, monthly active users on the platform decreased to 10.8 million, 1 million fewer compared to the first quarter and 3.2 million lesser than last year.

To counter weakness in trading, Robinhood has been looking to expand revenue streams. In June, it agreed to buy financial technology and credit card firm X1.



Article Source link and Credit

Continue reading

After Elon Musk’s $56B pay win, Tesla faces judge who called it ‘unfathomable’

Tesla will use Thursday’s strong support for Elon Musk’s $56 billion pay package to try to win over a Delaware judge that invalidated his 2018 agreement, the company’s board president said Friday. The long process to reaffirm the largest-ever corporate...

Apple Watch can double as lion heart rate monitor

The lion beeps tonight? An Apple Watch a day keeps the vet away? Wildlife veterinarians redefined “cat scan” after incredibly taking a lion’s pulse using the gadget, as detailed in a video blowing up on Instagram. “It’s a true...

These neighborhoods are the epicenter of NYC’s tech boom

As New York sees a record number of tech employees flood into the city, neighborhoods downtown and in Brooklyn are gaining an influx of top talent. Last year, the greater NYC area attracted 14.3% of all tech-sector employees who...