Sportsradar Becomes Newest Sports Betting Stock, But Underwhelms In Tuesday’s NASDAQ Debut
Sportsradar made its Wall Street debut today, with Sportsradar Global CEO Carsten Koerl and his executive team ringing the NASDAQ opening bell. The team was joined on the stage by investors Michael Jordan and Todd Boehly to signify their official IPO offering as the latest sports betting stock on the US exchange.
The Swiss sports betting & sports entertainment company will trade under the ticker symbol SRAD.
Following the bell ringing ceremony, Sportsradar founder and CEO Carsten Koerl spoke on the significance of the act and the brand’s debut on the public exchange.
“Ringing the Opening Bell at the NASDAQ as a public company is a significant milestone in the history of Sportradar. It is a testament to the ambition, originality, and resourcefulness of our employees, the strength and commitment of our partners, the confidence and support of our investors, and the vision of our customers.”
“Moving forward, we’ll continue to propel digital transformation across the sports ecosystem as a result of our dedication to developing the most innovative products and solutions that drive fan engagement.”
NBA legend and Charlotte Hornets owner Michael Jordan stood alongside Koerl as he run the bell. Jordan is just one of the high-profile names that have invested in the group’s future, with Dallas Mavericks owner Mark Cuban also serving as a large Sportsradar backer.
Sportsradar IPO Underwhelms On Opening Day
The opening day performance, however, saw the stock underperform at a time where sports betting investors would have expected to see the sector shine.
Having sold 19 million shares at a price of $27 in order to raise $513 million, share prices fell more than 10% at one point in Tuesday’s trading session before rebounding to -7.2% on the day. The $27 IPO fell to $25.05 by the end of the session.
Sportsradar’s IPO is the result of a failed public entrance through a special purpose acquisition company, a path taken by many other brands entering the sports betting stock arena. Talks between SPAC Horizon Acquisition Corp. II and Sportsradar ultimately failed to develop, but the group’s brass had already laid the groundwork for solo launch.
Sportsradar partners with more than 150 sports leagues around the world, with Sportsradar selling this information to over 900 sportsbook operators globally. The brand reported earnings north of $322 million over the first half of 2021, reflecting nearly a 30% increase over the same time period in 2020.
Accurate and fast sports data allows sportsbook operators to more efficiently grade wagers, and it also expands their ability to offer a wider variety of prop betting options.
Micro-betting has recently become a hot topic, with DraftKings (NASDAQ: DKNG) already partnering up with a software provider who would allow the book the ability to offer bettors an entirely different in-game wagering experience.
Sportsradar’s partnerships with the leagues themselves give them the most accurate data available, and this data is imperative for any shop looking to offer the truest betting lines in real-time based on expansive amounts of backlogged historical data.