Google-parent Alphabet dissolves entire stake in these startups

Google-parent Alphabet has dissolved its stake in trading app operator Robinhood Markets. In August this year, the tech giant announced that it had sold about 90% of its stake in Robinhood, and said in a recent filing with the Securities and Exchange Commission (SEC) that it has dissolved its holdings. THe SEC filing also revealed that Alphabet has sold off its entire holdings in rideshare service Lyft.
Alphabet also disclosed that it owned $104.9 million worth of semiconductor designer Arm Holdings PLC shares ARM, which went public on Sept. 14.
According to a report in news agency Reuters, the disclosure comes months after Alphabet slashed its stake in the company by nearly 90%. Google had around 612,214 Robinhood shares after that sale.
Missed Wall Street estimates in third quarter
Alphabet had reportedly invested in Robinhood when the latter was an unlisted startup. As economic conditions turned tough because of the Federal Reserve’s rate hikes last year, the app lost some of its charm.
Robinhood missed Wall Street estimates for revenue, weighed by a slowdown in trading during its third quarter earnings. Robinhood reported earnings that showed a 55% drop in crypto trading revenues in the quarter ending Sept. 30, compared to the year before.
News of Alphabet’s sale comes on the heels of the report that the company is in discussions to invest in artificial intelligence (AI) startup Character.AI, which makes character-based chatbots that appeal primarily to younger users.