1. Sportradar Group AG (NASDAQ:SRAD)
Number of Hedge Fund Holders: 31
Wrapping up the show, Jim Cramer weighed in on Sportradar Group AG (NASDAQ:SRAD), responding positively to a caller’s inquiry:
“I think Sportradar is a very interesting, intriguing stock. Now I- but remember, I also like Flutter, I like DraftKings, because I like the whole space and that is one very important part of the whole space.”
Sportradar is a global provider of sports data and betting services, supplying real-time analytics and integrity solutions to sportsbooks, media outlets, and sports federations. As sports betting grows worldwide, Cramer sees potential in the broader sector.
According to its Q4 2024 Earnings Call Transcript, Sportradar Group AG (NASDAQ:SRAD) delivered a strong fourth quarter and full year 2024, exceeding its already raised guidance and marking a clear inflection point for the business. Revenue for the full year reached €1.1 billion, up 26% year-over-year, while adjusted EBITDA rose 33% to €222 million. The company’s U.S. business was a major contributor, growing 58% and now accounting for nearly a quarter of total revenue. Sportradar also achieved significant margin expansion, with full-year adjusted EBITDA margins improving by over 100 basis points. In Q4 alone, revenue rose 22% to €307 million, driven by strong growth across its product portfolio, including streaming, betting engagement, and odds services. At the same time, adjusted EBITDA increased 53% to €61 million.
A major highlight of the quarter was Sportradar’s announcement of its agreement to acquire IMG ARENA’s global sports rights portfolio, which spans over 70 rights holders and 14 sports. This deal, which is expected to close in Q4 2025, is projected to be immediately accretive to revenue, EBITDA, and free cash flow. The acquisition strengthens Sportradar’s dominance in top global betting sports like tennis, soccer, and basketball, adding high-profile events such as Wimbledon, the U.S. Open, and Major League Soccer. Sportradar also continued to innovate on the tech front, using AI to expand its hyper-personalized offerings and boost in-play betting opportunities. Products like 4Sight, already live across multiple sports, are extending engagement times and opening new monetization paths. With continued operating leverage, a disciplined cost structure, and robust free cash flow generation, that is €118 million in 2024 versus €50 million the prior year, Sportradar is well-positioned for long-term growth, even before factoring in the IMG deal’s full benefits.
SRAD is a stock Jim Cramer recently discussed. While we acknowledge the potential of SRAD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SRAD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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