Edwin Dorsey presents a bearish thesis on Sportradar Group AG in a Substack article. SRAD’s share was trading at $22 on November 28th with trailing and forward P/E of 65.39 and 40.16 respectively according to Yahoo Finance. Jim Cramer praises DraftKings Inc. (DKNG) ahead of the NFL season for its deals.

Sportradar Group (SRAD) positions itself as a global leader in sports technology, providing data to sports leagues and online sportsbooks. It is backed by major U.S. leagues and serves as a core infrastructure provider for the regulated sports betting industry. The company emphasizes its value to regulated operators with case studies like Apostemos and betPARX.

However, The Bear Cave believes investors may be overestimating Sportradar’s moat and underestimating rising competitive threats and structural risks. The company’s exposure to grey-market gambling operators is a central concern, with relationships with 800 betting operators in markets lacking clear legality highlighted.

Questions arise about the durability of Sportradar’s business model given the competitive landscape of prediction markets and alternative data sources. This creates a potentially riskier investment profile than what headline narratives suggest. Despite a bearish view, Sportradar plays a data-driven role in the sports betting industry, as highlighted by Edwin Dorsey.

Previously bullish on DraftKings Inc., LongTermValue Research highlighted the company’s market position and EPS growth. The stock has depreciated by 33.71% since coverage, but the thesis remains intact as legalization and profitability improve. Edwin Dorsey presents a contrarian view on Sportradar, emphasizing its data-driven role in the industry.

Read more at Yahoo Finance: Sportradar Group AG (SRAD): A Bear Case Theory