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Yahoo
15 hours ago
- Business
- Yahoo
Is Innodata Stock's 4.65X PS Still Worth it? Buy, Sell, or Hold?
Innodata INOD shares are trading at a premium, as suggested by the Value Score of F. INOD stock is trading at a premium, with a forward 12-month Price/Sales of 4.65X compared with the Zacks Computer Services industry's shares are trading at a premium compared to its closest peers, including Broadridge Financial BR, CSG Systems International CSGS and EXL Service EXLS. In terms of the forward 12-month P/S, Broadridge Financial, CSG Systems International and EXL Service are trading at 3.88X, 1.54X and 3.55X, respectively. Image Source: Zacks Investment Research In terms of share price movement, Innodata shares have declined 0.8% year to date (YTD), underperforming the industry's and the Zacks Computer & Technology sector's return of 1.4% and 1.1%, respectively. Innodata shares have underperformed Broadridge Financial, CSG Systems International and EXL Service YTD, shares of which have surged 4.9%, 23.4% and 6.5%, respectively, over the same timeframe. Image Source: Zacks Investment Research The company plans to invest in AI technology supporting both current and prospective customers, as well as an expanding salesforce. In the second quarter of 2025, Innodata plans to invest $2 billion to support its largest customer. However, INOD's plan to invest in new programs before revenue realization is expected to weigh on near-term margins. Innodata targets an adjusted gross margin of 40%, which is significantly lower than the 43% reported in the first quarter of 2025 and the 41% in the year-ago quarter. Moreover, revenues from the largest customer are expected to decline 5% in the second quarter, which is a what should investors do with INOD shares at the current valuation? Let's find out. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 11 cents per share, down 39% over the past 60 days. Innodata reported break-even earnings in the year-ago quarter. The consensus mark for 2025 earnings is pegged at 69 cents per share, down 6.8% over the past 60 days, suggesting a 22.47% year-over-year decline. Innodata Inc. price-consensus-chart | Innodata Inc. Quote Innodata's Generative AI Test & Evaluation Platform is powered by NVIDIA's advanced inferencing technology. The platform integrates NVIDIA NIM microservices with Innodata's expertise in LLM red-teaming and risk mitigation. This combination enables businesses to accelerate model development while enhancing AI trustworthiness, a crucial factor for enterprise adoption. MasterClass was the inaugural charter customer, and Innodata is in active discussion with a leading global consulting firm for a go-to-market partnership. The solution will be generally available in late second-quarter benefits from massive investment promises made by the 'Magnificent 7,' including Microsoft's $80 billion and Meta Platforms' $64-$72 billion. The company is expanding relationships with key customers, including a second master statement of work with its largest client, tapping a separate, significantly larger budget. The company secured approximately $8 million in new engagements from four of its other Big Tech customers. Formerly, small accounts are showing material expansion opportunities into multi-million-dollar is onboarding several major clients, including top global firms in enterprise tech, cloud software, digital commerce and healthcare technology, each with significant growth potential. New customer acquisitions are expected to provide meaningful upside to both the top and bottom lines. The company expects 2025 revenues to jump 40% year over year to $238.6 million, driven by an expanding clientele. Innodata serves the generative AI IT services market that is expected to be worth $200 billion by 2029, offering significant growth prospects. The company is building the capability to collect and create generative AI training data as LLMs become more complex and advanced. INOD continues to invest in expanding languages like Arabic and French within domains like math and chemistry, for which the company is creating LLM training data and performing reinforcement learning. For current shareholders, holding the stock may be justified given Innodata's strong positioning in the growing generative AI safety domain and impressive revenue growth prospects. However, new investors might benefit from patience, carefully monitoring both the company's execution of its platform launch and any potential valuation adjustments in the currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to start accumulating the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report ExlService Holdings, Inc. (EXLS) : Free Stock Analysis Report CSG Systems International, Inc. (CSGS) : Free Stock Analysis Report Innodata Inc. (INOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
03-06-2025
- Business
- Yahoo
Innodata vs. SoundHound: Which AI Stock Has More Upside Potential?
In a market increasingly dominated by artificial intelligence giants, two under-the-radar companies — Innodata Inc. INOD and SoundHound AI SOUN — are carving out lucrative niches in the AI ecosystem. While SoundHound is racing ahead in conversational intelligence, offering voice AI solutions, Innodata has established itself as a foundational player in data engineering and AI model assurance. Both companies are posting stellar top-line growth, partnering with major industry players, and pursuing ambitious roadmaps. Yet, they offer vastly different risk-reward this comparison, we break down the strengths and weaknesses of each stock to determine which one could present greater upside potential as we move into the latter half of 2025. Innodata is a powerful, behind-the-scenes enabler of generative AI infrastructure. The company specializes in large language models (LLMs) data preparation, model fine-tuning and safety evaluations, serving a client roster that includes five of the 'Magnificent Seven' tech giants — namely Microsoft Corp. MSFT, Alphabet Inc. GOOGL and Inc. AMZN. This customer base is particularly valuable, given that Amazon, Alphabet, Meta and Microsoft alone are expected to invest billions in generative AI infrastructure in 2024, Innodata reported a near doubling of revenues to $170.5 million and an impressive 250% surge in adjusted EBITDA to $34.6 million. In the first quarter of 2025, momentum has been even stronger, with revenues up 120% year over year to $58.3 million, and adjusted EBITDA increasing 236% and hitting $12.7 million, or 22% of revenues — highlighting scalable operating leverage. The company's adjusted gross margin of 43% also exceeded its long-term target of 40%, demonstrating scalable and profitable execution as it ramps up delivery to both new and existing customers.A major move is the launch of its Generative AI Test & Evaluation Platform in partnership with Nvidia (NVDA). This platform addresses enterprise concerns around AI safety, bias and transparency and has already seen adoption by companies like MasterClass. As global AI regulation and scrutiny increase, Innodata is positioning itself at the forefront of model validation and firm's financials are robust, with $56.6 million in cash and no debt, giving it the flexibility to invest in talent and technology without endangering its balance one of the main risks for Innodata is customer concentration. In 2024, 48% of total revenues came from a single customer. While management is actively expanding relationships with other Big Tech players — having secured $8 million in new deals in the first quarter and eyeing another $30 million in potential contracts — this dependency remains a critical vulnerability should contract renewals falter or client priorities the company's revenue growth target of 40%+ for 2025 and its consistent margin expansion suggest a scalable, high-moat business model that's becoming integral to enterprise AI infrastructure. SoundHound AI has positioned itself as a fast-growing player in the voice AI space, with its emphasis on conversational AI platforms driving rapid revenue expansion. The company delivered a record 151% year-over-year revenue increase in the first quarter of 2025, reaching $29.1 million. This surge is driven by a flurry of acquisitions and partnerships that have expanded SoundHound's reach into fast food ordering (e.g., White Castle, Applebee's), automotive voice assistants and broader enterprise use has significantly expanded its scale and customer reach through acquisitions like SYNQ3, which is a restaurant voice ordering provider; Allset, which is an online ordering platform; and Amelia, which is an AI dialogue company. The acquisitions are expected to contribute significantly to revenues, with Amelia alone to add $45 million in recurring revenues in 2025. This feeds into SoundHound's guidance of $157-$177 million in full-year 2025 revenues, implying 85-109% growth over the 2024 stands out is SoundHound's diversified customer base, with no single customer accounting for more than 10% of revenues. This marks a significant improvement over past levels, enhances overall risk management and highlights the company's expanded serviceable markets. Its multilingual AI model, Polaris, and strategic collaborations with NVIDIA, Tencent, Perplexity AI and others bolster its competitive moat in a space where Big Tech incumbents like Amazon and Alphabet are formidable competitors. Financially, SoundHound is capitalized to fuel growth, with $246 million in cash and no it remains unprofitable, with the first quarter showing a $22.2 million adjusted EBITDA loss, an increase from the $15.4 million loss reported a year earlier. Margins have also come under pressure, primarily due to the cost of acquisitions and scaling, with GAAP gross margins falling from 59.7% to 36.5% year over year, reflecting continued investment in growth and R&D. Moreover, major players such as Amazon (Alexa), Alphabet (Assistant), Apple (Siri), and others continue to pour substantial investments into voice AI technologies. While analysts have largely held steady on SOUN's earnings outlook over the past 30 days, sentiment toward INOD has turned notably more bearish during the same period. Over the past 30 days, the Zacks Consensus Estimate for INOD's EPS has been revised two cents respect to growth rates, we note that, for INOD, the Zacks Consensus Estimate for 2025 sales and EPS implies a year-over-year increase of 41.76% and a decline of 19.10%, respectively. For SOUN, the Zacks Consensus Estimate for 2025 sales implies year-over-year growth of 91.07%, while the EPS projections suggest an improvement from a loss of $1.04 per share in the prior year to a loss of 16 cents per share in 2025. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)INOD Stock Image Source: Zacks Investment Research SOUN Stock Image Source: Zacks Investment Research So far this year, Innodata has fallen 0.1%, while SoundHound has dropped 49% in the same time frame. However, the stocks are moving at different paces in the short term, with SoundHound bouncing back 10% in the past month, while Innodata increased only 2% over the same period. The recent rise in SOUN stock reflects growing investor optimism as the market begins to embrace the company's growth narrative. Image Source: Zacks Investment Research INOD is trading at a forward 12-month price-to-sales (P/S) multiple of 4.77X, which is slightly above its one-year median of 4.34X. SOUN does seem pricey, with its forward 12-month P/S multiple sitting at 22.23X, well above its one-year median of 19.62X. Image Source: Zacks Investment Research Both Innodata and SoundHound have a Zacks Rank #3 (Hold), which makes choosing one stock a difficult task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks is a solid growth story, riding the wave of voice AI adoption across consumer and industrial sectors. Its aggressive expansion strategy, strong partnerships and rapidly growing revenues make it a compelling bet on the future of conversational AI. However, the company's mounting losses, falling margins and stiff competition from tech giants temper the near-term investment Innodata operates more quietly — but no less impactfully — in the engine room of the AI revolution. With strong profitability metrics, mission-critical services and deep integration with Big Tech, INOD offers a more balanced growth profile. Though its customer concentration is a red flag, the company is actively addressing this through new contracts and platform offerings. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Innodata Inc. (INOD) : Free Stock Analysis Report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
02-06-2025
- Business
- Yahoo
Innodata vs. SoundHound: Which AI Stock Has More Upside Potential?
In a market increasingly dominated by artificial intelligence giants, two under-the-radar companies — Innodata Inc. INOD and SoundHound AI SOUN — are carving out lucrative niches in the AI ecosystem. While SoundHound is racing ahead in conversational intelligence, offering voice AI solutions, Innodata has established itself as a foundational player in data engineering and AI model assurance. Both companies are posting stellar top-line growth, partnering with major industry players, and pursuing ambitious roadmaps. Yet, they offer vastly different risk-reward this comparison, we break down the strengths and weaknesses of each stock to determine which one could present greater upside potential as we move into the latter half of 2025. Innodata is a powerful, behind-the-scenes enabler of generative AI infrastructure. The company specializes in large language models (LLMs) data preparation, model fine-tuning and safety evaluations, serving a client roster that includes five of the 'Magnificent Seven' tech giants — namely Microsoft Corp. MSFT, Alphabet Inc. GOOGL and Inc. AMZN. This customer base is particularly valuable, given that Amazon, Alphabet, Meta and Microsoft alone are expected to invest billions in generative AI infrastructure in 2024, Innodata reported a near doubling of revenues to $170.5 million and an impressive 250% surge in adjusted EBITDA to $34.6 million. In the first quarter of 2025, momentum has been even stronger, with revenues up 120% year over year to $58.3 million, and adjusted EBITDA increasing 236% and hitting $12.7 million, or 22% of revenues — highlighting scalable operating leverage. The company's adjusted gross margin of 43% also exceeded its long-term target of 40%, demonstrating scalable and profitable execution as it ramps up delivery to both new and existing customers.A major move is the launch of its Generative AI Test & Evaluation Platform in partnership with Nvidia (NVDA). This platform addresses enterprise concerns around AI safety, bias and transparency and has already seen adoption by companies like MasterClass. As global AI regulation and scrutiny increase, Innodata is positioning itself at the forefront of model validation and firm's financials are robust, with $56.6 million in cash and no debt, giving it the flexibility to invest in talent and technology without endangering its balance one of the main risks for Innodata is customer concentration. In 2024, 48% of total revenues came from a single customer. While management is actively expanding relationships with other Big Tech players — having secured $8 million in new deals in the first quarter and eyeing another $30 million in potential contracts — this dependency remains a critical vulnerability should contract renewals falter or client priorities the company's revenue growth target of 40%+ for 2025 and its consistent margin expansion suggest a scalable, high-moat business model that's becoming integral to enterprise AI infrastructure. SoundHound AI has positioned itself as a fast-growing player in the voice AI space, with its emphasis on conversational AI platforms driving rapid revenue expansion. The company delivered a record 151% year-over-year revenue increase in the first quarter of 2025, reaching $29.1 million. This surge is driven by a flurry of acquisitions and partnerships that have expanded SoundHound's reach into fast food ordering (e.g., White Castle, Applebee's), automotive voice assistants and broader enterprise use has significantly expanded its scale and customer reach through acquisitions like SYNQ3, which is a restaurant voice ordering provider; Allset, which is an online ordering platform; and Amelia, which is an AI dialogue company. The acquisitions are expected to contribute significantly to revenues, with Amelia alone to add $45 million in recurring revenues in 2025. This feeds into SoundHound's guidance of $157-$177 million in full-year 2025 revenues, implying 85-109% growth over the 2024 stands out is SoundHound's diversified customer base, with no single customer accounting for more than 10% of revenues. This marks a significant improvement over past levels, enhances overall risk management and highlights the company's expanded serviceable markets. Its multilingual AI model, Polaris, and strategic collaborations with NVIDIA, Tencent, Perplexity AI and others bolster its competitive moat in a space where Big Tech incumbents like Amazon and Alphabet are formidable competitors. Financially, SoundHound is capitalized to fuel growth, with $246 million in cash and no it remains unprofitable, with the first quarter showing a $22.2 million adjusted EBITDA loss, an increase from the $15.4 million loss reported a year earlier. Margins have also come under pressure, primarily due to the cost of acquisitions and scaling, with GAAP gross margins falling from 59.7% to 36.5% year over year, reflecting continued investment in growth and R&D. Moreover, major players such as Amazon (Alexa), Alphabet (Assistant), Apple (Siri), and others continue to pour substantial investments into voice AI technologies. While analysts have largely held steady on SOUN's earnings outlook over the past 30 days, sentiment toward INOD has turned notably more bearish during the same period. Over the past 30 days, the Zacks Consensus Estimate for INOD's EPS has been revised two cents respect to growth rates, we note that, for INOD, the Zacks Consensus Estimate for 2025 sales and EPS implies a year-over-year increase of 41.76% and a decline of 19.10%, respectively. For SOUN, the Zacks Consensus Estimate for 2025 sales implies year-over-year growth of 91.07%, while the EPS projections suggest an improvement from a loss of $1.04 per share in the prior year to a loss of 16 cents per share in 2025. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)INOD Stock Image Source: Zacks Investment Research SOUN Stock Image Source: Zacks Investment Research So far this year, Innodata has fallen 0.1%, while SoundHound has dropped 49% in the same time frame. However, the stocks are moving at different paces in the short term, with SoundHound bouncing back 10% in the past month, while Innodata increased only 2% over the same period. The recent rise in SOUN stock reflects growing investor optimism as the market begins to embrace the company's growth narrative. Image Source: Zacks Investment Research INOD is trading at a forward 12-month price-to-sales (P/S) multiple of 4.77X, which is slightly above its one-year median of 4.34X. SOUN does seem pricey, with its forward 12-month P/S multiple sitting at 22.23X, well above its one-year median of 19.62X. Image Source: Zacks Investment Research Both Innodata and SoundHound have a Zacks Rank #3 (Hold), which makes choosing one stock a difficult task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks is a solid growth story, riding the wave of voice AI adoption across consumer and industrial sectors. Its aggressive expansion strategy, strong partnerships and rapidly growing revenues make it a compelling bet on the future of conversational AI. However, the company's mounting losses, falling margins and stiff competition from tech giants temper the near-term investment Innodata operates more quietly — but no less impactfully — in the engine room of the AI revolution. With strong profitability metrics, mission-critical services and deep integration with Big Tech, INOD offers a more balanced growth profile. Though its customer concentration is a red flag, the company is actively addressing this through new contracts and platform offerings. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Innodata Inc. (INOD) : Free Stock Analysis Report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Buy 5 Mid-Cap AI Infrastructure Stocks Amid U.S.-China Tariff Deal Hope
Wall Street rallied significantly on May 12 following positive news related to a tariff and trade deal between the United States and China. U.S. stock markets have faced massive volatility ever since President Donald Trump imposed a 10% baseline tariff on each and every country with which it trades. Tariff rates were much higher for several major trading partners of the United States. U.S. technology behemoths, especially artificial intelligence (AI) giants, depend on a cheaper source of imports for high-end products. Consequently, AI stocks suffered severely fearing higher input costs and a near-term recession in the U.S. economy. At this stage, it should be prudent to invest in mid-cap AI infrastructure stocks with a favorable Zacks Rank. Five such stocks are: Innodata Inc. INOD, Five9 Inc. FIVN, UiPath Inc. PATH, InterDigital Inc. IDCC and AeroVironment Inc. AVAV. Each of these are stocks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. On May 12, the United States and China agreed in a discussion in Switzerland to reach a temporary agreement that 'reciprocal' tariffs between both countries will be cut from 125% to 10%. Meanwhile, United States' 20% tariffs on Chinese imports relating to fentanyl will remain intact, meaning total tariffs on China will be 30%. The United States had reached a tariff deal with the U.K. last week. The Trump administration is also involved in negotiation with its 17 other large trade partners including India for trade and tariff. The chart below shows the price performance of our five picks year to date. Image Source: Zacks Investment Research Innodata has established itself as a crucial partner in this AI revolution by providing high-quality data needed to train advanced language models. INOD is expected to benefit from massive demand for supplying state-of-the-art data engineering to large language model building and maintenance over the long term. INOD came up with first-quarter 2025 earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.17 per share. Revenues of $58.34 million surpassed the Zacks Consensus Estimate by 1.24%. INOD's football-to-dime analogy effectively illustrates the vast untapped potential in AI data — if all possible human knowledge that could be captured as data represents a football, today's best AI models have only trained on data equivalent to the size of a dime. The recent beta launch of Innodata's Generative AI Test & Evaluation Platform, powered by NVIDIA technology, represents a strategic expansion of the company's AI services portfolio. Investors should monitor how effectively INOD is commercializing new offerings such as the AI Test & Evaluation Platform. The long-term growth of Innodata's business model is set to be backed by big techs, other big enterprises, industry-specific demand, federal agencies, public relations and healthcare. One of the most promising aspects of INOD's strategy is its successful customer diversification efforts. Innodata has an expected revenue and earnings growth rate of 40.3% and -16.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings remained the same over the last 60 days. Five9 provides intelligent cloud software for contact centers in the United States, India, and internationally. FIVN offers a virtual contact center cloud platform that delivers a suite of applications, enabling a broad range of contact center-related customer service, sales, and marketing functions. FIVN's platform comprises interactive virtual agents, agent assistance, workflow automation, workforce engagement management, AI insights, and AI summaries. It allows management and optimization of customer interactions across voice, chat, email, web, social media, and mobile channels directly or through its application programming interfaces. FIVN has been benefiting from the growing adoption of AI tools in its call center services, with personalized AI agents emerging as a major growth driver. On Feb. 19, Five9 introduced its Intelligent CX Platform powered by Five9 Genius AI on the Google Cloud space. FIVN also released new Five9 AI agents tailor-made for Google Cloud. Five9 has an expected revenue and earnings growth rate of 9.6% and 11.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days. UiPath provides an end-to-end automation platform that offers a range of robotic process automation solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. PATH offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. The PATH platform's embedded AI, ML, and NLP (Natural Language Processing) capabilities improve decisioning and information processing. PATH introduced new generative AI features, including specialized LLMs (Large Language Model) such as DocPATH and CommPATH, and Context Grounding, to enhance automated AI models for specific business needs. UiPath has an expected revenue and earnings growth rate of 6.8% and -1.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.3% over the last 60 days. InterDigital is benefiting from solid licensing momentum in the smartphone business. IDCC's global footprint, diversified product portfolio and ability to penetrate in different markets are impressive. IDCC reported strong first-quarter 2025 results, with both the top and bottom lines beating the Zacks Consensus Estimate. IDCC's AI-powered Receiver Design for Future Wireless Communications was validated by Keysight Technology. The state-of-the-art innovation also optimizes throughput performance, reduces communication overhead and simplifies receiver architecture, making it suitable for 6G applications. Apart from IDCC's strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, considering the massive size of the market it licenses. Focus on advanced 5G and 6G research is a positive. InterDigital has an expected revenue and earnings growth rate of -20% and -21.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.3% over the last 30 days. AeroVironment designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. AVAV operates through UnCrewed Systems, Loitering Munition Systems, and the MacCready Works segments. AVAV applies advanced technological innovations, seamlessly integrating AI and cutting-edge computer vision into agile, effective solutions. AVAV supplies uncrewed aircraft and ground robot systems, loitering munitions systems, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. AeroVironment also offers airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, AVAV offers small UAS products, including training, spare parts, product repair, product replacement, maintenance, and upgrade services. Further, it develops mars Helicopters and high-altitude pseudo-satellite UAS systems. AeroVironment has an expected revenue and earnings growth rate of 25.1% and 43%, respectively, for the current year (ending April 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report AeroVironment, Inc. (AVAV) : Free Stock Analysis Report UiPath, Inc. (PATH) : Free Stock Analysis Report Innodata Inc. (INOD) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-04-2025
- Business
- Yahoo
Innodata (NasdaqGM:INOD) Unveils Generative AI Platform At GTC 2025
Innodata recently announced the beta launch of its Generative AI Test & Evaluation Platform at the GTC 2025, leveraging NVIDIA's advanced technology to bolster AI safety and performance for enterprises. Despite this significant product development, Innodata's share price fell 20% over the past week. This decline coincided with a broader market downturn triggered by global trading tensions and tariffs, which saw the Dow and S&P 500 plunging significantly. The overall market conditions, including a tech-heavy Nasdaq entering a bear market, likely amplified the adverse impact on Innodata's shares during this turbulent period. Be aware that Innodata is showing 2 possible red flags in our investment analysis. Find companies with promising cash flow potential yet trading below their fair value. Over the past five years, Innodata (NasdaqGM:INOD) has delivered a remarkable total shareholder return of very large value, highlighting considerable growth compared to the general market performance. Recently, the company has aggressively enhanced its position in the generative AI space. Key developments included the introduction of a beta version of the Generative AI Test & Evaluation Platform on March 19, 2025, following a significant earnings increase, with Q4 2024 sales reaching US$59.18 million and net income climbing to US$10.3 million from the previous year. Further amplifying its growth trajectory, Innodata has engaged in lucrative partnerships, evidenced by the June 2024 announcement of new development programs with a leading Big Tech client, projected to generate US$44 million in annualized revenue. Despite facing a class action lawsuit in February 2024, the company's raised revenue guidance in late 2024 and early 2025, along with strategic buybacks of 5.8% of shares as of November 2024, have underscored its resilience and attractive longer-term prospects. Assess Innodata's future earnings estimates with our detailed growth reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGM:INOD. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
