Sell Live Nation Entertainment (LYV) & ThredUp (TDUP)
We have a few stocks where momentum has turned more negative than I’d prefer over the last two or three weeks. We will tighten up our portfolio and reduce our exposure a little by letting two of these stocks go today.
First up is Live Nation Entertainment (LYV). The stock is only down 4% from our entry point on August 20. But I expected the stock to be a steady performer, and the story has gotten a little messy with the U.S. Supreme Court rejecting the company’s bid to move a consumer antitrust case to arbitration. I don’t want to get caught up in this, so we will move to the sidelines until this situation blows over. SELL
Next up is ThredUp (TDUP). I like this stock and story a lot, but I’ve watched shares fall below my “concern” threshold of 10.0 and fail to recover. I’d rather book the roughly 25% gain on our position and keep an eye on TDUP to revisit later than risk a deeper drop. We jumped in with a half-sized position and will sell it today. SELL
Elsewhere, shares of Credo Technology (CRDO) are retreating today on news it has filed to sell up to $750 million in stock. The stock is adjusting to this news, and it doesn’t change the big-picture story. Continue to hold. HOLD HALF
Lastly, Sportradar Group (SRAD) has sold off in sympathy with weakness in Online Sports Betting (OSB) names, including DraftKings (DKNG) and Flutter (FLUT), in the wake of Kalshi’s parlay tease a week ago Monday. The very, very short version of all this is that there is some concern that the OSB players won’t have the regulatory protection they were expected to have and that prediction market operators could “swoop in” and grab market share with sports betting. This is all debatable, but investors will likely need some regulatory clarity to pile back into the OSB names. Now, it’s important to recognize that SRAD is not an OSB operator. It sells data and digital content to these guys (among other lines of business) and essentially has technology that supports the global sports betting market. This doesn’t mean the stock is completely without risks, of course. But with about 70% of revenue secured under fixed-price contracts and the first-round decision on the IMG Arena asset acquisition expected by October 24, plus a decent-sized pullback in shares, there’s an argument to be made that SRAD is a strong buy right here. The stock trades just above its 200-day line and should find support around this level. BUY
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