Sportradar Group AG ( SRAD ) shares are trading lower Thursday morning following a report from The Bear Cave titled, “Problems at Sportradar Group ( SRAD ).”

SRAD is taking a hit from negative sentiment. Check the fundamentals here.

What To Know: The bearish newsletter argues investors overestimate the company's business moat and alleges the firm facilitates the very “crooked gambling” it claims to police.

Benzinga has reached out to Sportradar ( SRAD ) for comment on the report.

The investigation highlights allegations that Sportradar ( SRAD ) serves “grey market” operators, including 188Bet and Stake, and powers platforms in jurisdictions where betting is illegal, such as Vietnam.

The report further cites a recent German documentary revealing Sportradar ( SRAD ) scouts collecting live data at amateur games against team wishes, which The Bear Cave claims undermines sports integrity and incentivizes match-fixing.

Beyond compliance risks, the report warns of significant business headwinds, citing “talent drain” and a corporate culture of “stagnation.”

The Bear Cave contends Sportradar ( SRAD ) faces increasing pressure from lower-cost competitors and the rapid rise of prediction markets, which may eventually bypass the official league data mandates that currently protect Sportradar's ( SRAD ) margins.

Benzinga Edge Rankings: Benzinga Edge stock rankings, which utilize four critical scores to help investors identify the strongest and weakest stocks, currently assign Sportradar ( SRAD ) a notably low Value score of 9.37.

Read Also: September Jobs Spike Threatens Fed Cut, But Wall Street Still Jumps

SRAD Price Action: Sportradar ( SRAD ) shares were down 6.41% at $20.31 at the time of publication on Thursday, according to Benzinga Pro data.

How To Buy SRAD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Sportradar’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Shutterstock.com