Jim Cramer Recently Shed Light on These 9 Stocks

6. Sportradar Group AG (NASDAQ:SRAD)

Number of Hedge Fund Holders: 24

A caller asked Cramer whether they should buy, hold, or take the money and run when it comes to Sportradar Group AG (NASDAQ:SRAD). Here’s what  Mad Money’s host had to say:

“No, no. I like this company. I think this company, you know, it’s now turned profitable. It’s doing a lot of really good things. It is not expensive, it’s not expensive on its growth rate. Okay? So I think you’re into something good. It’s speculative, but I like it.”

Sportradar (NASDAQ:SRAD) provides sports data services to the sports betting and media industries, offering software, data, content, and live streaming solutions. In October 2024, when Cramer discussed the company, he said:

“I’ve gotta tell you that there are some things here I really like. Unlike so many other members of the IPO class of 2021, these guys actually make money. In fact, they’ve been profitable since coming public… Using Sportradar’s latest revenue and EBITDA guidance for 2024, both lines will have more or less doubled over the past three years. Put it another way, Sportradar’s revenue has increased at a 24% compound annual growth rate in these past three years and its profitability has grown even faster.

What’s driving the strength? Okay, in the past few years, there’ve been several rounds of rights renewals, which have proved to be pretty expensive for Sportradar… The cost of these rights has risen substantially over the past few years, which has put a lid on Sportradar’s earnings power for a long time. Now though, there’s just one big deal left and that’s with Major League Baseball.”

Cramer noted that after finalizing its current negotiations, the company should experience stability and be able to focus on improving its margins. He pointed out that Wall Street expects significant earnings growth for the company in 2025 and 2026, with analysts highlighting this potential.

Cramer also mentioned that while Sportradar’s (NASDAQ:SRAD) financial performance has improved over the past three years since going public, the company’s outlook is now even more favorable. Cramer commented that with much of its costly bidding for sports league rights behind it, the company is well-positioned for future growth, which could drive its stock upward.