Alphabet, the parent company of Google, has significantly reduced its investment in Robinhood Markets, while Cathie Wood continues to buy shares in the trading platform for her ARK funds.
According to a filing on Friday, Alphabet (ticker: GOOGL) decreased its stake in Robinhood (HOOD) by almost 90%. As of the end of June, the tech giant held 612,214 shares, compared to over 4.9 million shares at the end of March.
Despite this development, Robinhood shares saw a 1.2% increase in premarket trading on Friday, reaching $11.67. This comes after a decline of more than 7% on Thursday, which overshadowed the company's first quarterly profit due to reduced trading activity.
Bloomberg reported that Alphabet had made several investments in Robinhood through its venture-capital business when the trading platform was still private. The exact value and timing of the sale of Robinhood shares are unclear; however, Alphabet's current stake is estimated to be worth $7.1 million.
On the other hand, Cathie Wood's flagship ARK Innovation ETF (ARKK) disclosed the purchase of 365,748 Robinhood shares on Thursday. Additionally, her ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) bought 70,111 shares and 46,422 shares, respectively.