Latest news with #Innodata
Yahoo
4 days ago
- Business
- Yahoo
Innodata Trades 29% Below 52-Week High: Buy, Sell, or Hold the Stock? (Revised)
Innodata INOD shares closed at $50.10 on Thursday, roughly 29.4% below the 52-week high of $71 it hit on Feb. 21, 2025. INOD shares have appreciated 26.8% year to date (YTD), outperforming the Zacks Computer and Technology sector's return of 8.6% and the Zacks Computer – Services industry's return of 0.9%.Innodata shares have outperformed closest competitors, such as Cognizant CTSH, Infosys INFY and ExlService EXLS YTD, shares of which have dropped 1.8%, 15.8% and 4.3%, respectively, over the same timeframe. Innodata benefits from massive investment promises made by the 'Magnificent 7,' including Microsoft's $80 billion and Meta Platforms' $64-$72 billion. The data engineering 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 million to support its largest customer. INOD Stock's Performance Image Source: Zacks Investment Research Innodata shares are now trading above the 50-day and 200-day moving averages, indicating a bullish trend. INOD Trades Above the 50-Day and 200-day SMAs Image Source: Zacks Investment Research 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. Revenues from the largest customer are expected to decline 5% sequentially in the second quarter, which is a headwind. So, what should investors do with INOD stock? Let's dig deep to find out. Expanding Clientele to Boost INOD's Prospects Innodata benefits from expanding Generative AI (Gen AI) capabilities for enterprises in 2025 and beyond. Contracts with eight Big Tech for Large Language Models (LLMs) data engineering, including five of the 'Magnificent 7' that position INOD for strong growth. Innodata serves the Gen 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 Gen 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 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. INOD's latest Generative AI Test & Evaluation Platform, a new suite designed to help enterprises assess the safety and reliability of LLMs. Built on NVIDIA's NIM microservices, the platform supports hallucination detection, adversarial prompt testing and domain-specific risk benchmarking across text, image, audio and video inputs, helping organizations build more trustworthy AI. Earnings Estimate Revisions Trend Steady for INOD The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 11 cents per share, unchanged over the past 60 days. Innodata reported break-even earnings in the year-ago quarter. Innodata Inc. Price and Consensus Innodata Inc. price-consensus-chart | Innodata Inc. Quote The consensus mark for 2025 earnings is pegged at 69 cents per share, unchanged over the past 60 days, suggesting a 22.47% year-over-year decline. Valuation: INOD Shares Trading at a Premium Innodata 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 5.84X compared with the Zacks Computer Services industry's shares are trading at a premium compared to its closest peers, including Cognizant, Infosys and EXLService. In terms of the forward 12-month P/S, Cognizant, Infosys and EXLService are trading at 1.75X, 3.81X and 3.17X, respectively. Price/Sales Ratio (F12M) Image Source: Zacks Investment Research Conclusion 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 as the INOD stock remains 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. (We are reissuing this article to correct a mistake. The original article, issued on July 18, 2025, should no longer be relied upon.) 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 Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report American Noble Gas Inc. (INFY) : Free Stock Analysis Report ExlService Holdings, Inc. (EXLS) : Free Stock Analysis Report Innodata Inc. (INOD) : 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
22-07-2025
- Business
- Yahoo
Better AI Stock: BigBear.ai vs. Innodata
Key Points business is stabilizing as it gains more government contracts. Innodata's business is booming as it processes more AI data. One of these AI stocks looks like a more compelling investment. 10 stocks we like better than › (NYSE: BBAI) and Innodata (NASDAQ: INOD) represent two different ways to invest in the booming artificial intelligence (AI) market. develops AI modules for edge networks, while Innodata helps large companies prepare their data for AI applications. Over the past 12 months, stock surged more than 390% as it impressed investors with the stabilization of its business and the rollout of its biometric security services. Innodata's stock rose about 140% as the market's demand for its AI-oriented services soared. Should you still buy either of these high-flying AI stocks today? The differences between and Innodata three main AI modules -- Observe, Orient, and Dominate -- ingest data, identify trends, and predict future outcomes, respectively. It installs its modules on edge networks, which receive and process that data before it reaches its clients' origin servers. It also shares that data with bigger AI-driven companies, such as Palantir. Before went public by merging with a special purpose acquisition company (SPAC) in late 2021, it claimed it could triple its annual revenue from $182 million in 2021 to $550 million in 2024. However, its revenue grew from $146 million in 2021 to only $158 million in 2024, as it grappled with tough competition, macro headwinds, and the bankruptcy of its top customer, Virgin Orbit. To boost its revenue and expand its ecosystem, it acquired the AI vision firm Pangiam last April. Innodata went public back in 1993, but it didn't attract much attention because it was a small analytics software provider that increased its revenue at a compound annual growth rate (CAGR) of 6% from 1994 to 2018. But in 2018, it launched a suite of task-specific microservices that could efficiently prepare large amounts of data for AI applications. Five of the "Magnificent Seven" companies subsequently hired Innodata to prepare their AI-oriented data, and its annual revenue surged at a CAGR of 20% from 2018 to 2024. Its business boomed because those large tech companies often spend 80% of their time preparing the data for a new AI project and just 20% of that time training the actual algorithm. To speed up that inefficient process, those tech giants outsourced the preparation of that data to Innodata. Which company could grow faster over the next three years? Over the next three years, growth should be driven by its swelling backlog of government contracts -- which include new digital ID and biometrics services for the Department of Homeland Security (DHS) at airports and other ports of entry, a modernization project for the U.S. military's Orion Decision Support Platform (DSP), and new supply chain initiatives. It could also attract more commercial clients as the macro environment warms up again. During the same period, Innodata's growth should be fueled by the rapid expansion of the generative AI market, which should drive its big tech customers to ramp up their spending on its data preparation services. It will likely attract even more large customers. Projected Revenue Growth 2025 2026 2027 6.1% 12.1% No consensus yet Innodata 41.5% 23.5% 5.1% Data source: Marketscreener. revenue growth is expected to accelerate in 2025 and 2026, but analysts have not yet set any firm forecasts for 2027. Innodata's revenue growth is expected to decelerate in 2026 and 2027 as it saturates its core customer base of Magnificent Seven customers, and its potential expansion into other markets hasn't been factored into those estimates yet. is not yet profitable, but analysts expect it to narrow its net losses through 2026. Innodata turned profitable in 2024, and analysts expect its net income to grow at a CAGR of 16% through 2027 as its pricing power in its niche market improves and economies of scale kick in. Which stock is a better value right now? With a market cap of $2.1 billion, trades at 12 times this year's sales. Innodata, which is valued at $1.6 billion, trades at less than 7 times this year's sales. looks a bit pricey if its revenue growth doesn't accelerate in 2027 and beyond. Its growth in the government sector is encouraging, but those contracts can be less predictable than its commercial contracts. It's also still growing at a slower rate than higher-growth AI leaders such as Palantir. Meanwhile, Innodata appears to be a better value because analysts' longer-term estimates for 2027 may be too conservative. With all that cash coming in from its Magnificent Seven customers, it could still have plenty of ways to expand both organically and inorganically over the next two years. So, while and Innodata might both benefit from the secular expansion of the AI market, Innodata's stronger growth, higher profits, and lower valuation make it the better buy. Do the experts think is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Better AI Stock: vs. Innodata was originally published by The Motley Fool
Globe and Mail
22-07-2025
- Business
- Globe and Mail
Better AI Stock: BigBear.ai vs. Innodata
Key Points business is stabilizing as it gains more government contracts. Innodata's business is booming as it processes more AI data. One of these AI stocks looks like a more compelling investment. 10 stocks we like better than › (NYSE: BBAI) and Innodata (NASDAQ: INOD) represent two different ways to invest in the booming artificial intelligence (AI) market. develops AI modules for edge networks, while Innodata helps large companies prepare their data for AI applications. Over the past 12 months, stock surged more than 390% as it impressed investors with the stabilization of its business and the rollout of its biometric security services. Innodata's stock rose about 140% as the market's demand for its AI-oriented services soared. Should you still buy either of these high-flying AI stocks today? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The differences between and Innodata three main AI modules -- Observe, Orient, and Dominate -- ingest data, identify trends, and predict future outcomes, respectively. It installs its modules on edge networks, which receive and process that data before it reaches its clients' origin servers. It also shares that data with bigger AI-driven companies, such as Palantir. Before went public by merging with a special purpose acquisition company (SPAC) in late 2021, it claimed it could triple its annual revenue from $182 million in 2021 to $550 million in 2024. However, its revenue grew from $146 million in 2021 to only $158 million in 2024, as it grappled with tough competition, macro headwinds, and the bankruptcy of its top customer, Virgin Orbit. To boost its revenue and expand its ecosystem, it acquired the AI vision firm Pangiam last April. Innodata went public back in 1993, but it didn't attract much attention because it was a small analytics software provider that increased its revenue at a compound annual growth rate (CAGR) of 6% from 1994 to 2018. But in 2018, it launched a suite of task-specific microservices that could efficiently prepare large amounts of data for AI applications. Five of the " Magnificent Seven" companies subsequently hired Innodata to prepare their AI-oriented data, and its annual revenue surged at a CAGR of 20% from 2018 to 2024. Its business boomed because those large tech companies often spend 80% of their time preparing the data for a new AI project and just 20% of that time training the actual algorithm. To speed up that inefficient process, those tech giants outsourced the preparation of that data to Innodata. Which company could grow faster over the next three years? Over the next three years, growth should be driven by its swelling backlog of government contracts -- which include new digital ID and biometrics services for the Department of Homeland Security (DHS) at airports and other ports of entry, a modernization project for the U.S. military's Orion Decision Support Platform (DSP), and new supply chain initiatives. It could also attract more commercial clients as the macro environment warms up again. During the same period, Innodata's growth should be fueled by the rapid expansion of the generative AI market, which should drive its big tech customers to ramp up their spending on its data preparation services. It will likely attract even more large customers. Projected Revenue Growth 2025 2026 2027 6.1% 12.1% No consensus yet Innodata 41.5% 23.5% 5.1% Data source: Marketscreener. revenue growth is expected to accelerate in 2025 and 2026, but analysts have not yet set any firm forecasts for 2027. Innodata's revenue growth is expected to decelerate in 2026 and 2027 as it saturates its core customer base of Magnificent Seven customers, and its potential expansion into other markets hasn't been factored into those estimates yet. is not yet profitable, but analysts expect it to narrow its net losses through 2026. Innodata turned profitable in 2024, and analysts expect its net income to grow at a CAGR of 16% through 2027 as its pricing power in its niche market improves and economies of scale kick in. Which stock is a better value right now? With a market cap of $2.1 billion, trades at 12 times this year's sales. Innodata, which is valued at $1.6 billion, trades at less than 7 times this year's sales. looks a bit pricey if its revenue growth doesn't accelerate in 2027 and beyond. Its growth in the government sector is encouraging, but those contracts can be less predictable than its commercial contracts. It's also still growing at a slower rate than higher-growth AI leaders such as Palantir. Meanwhile, Innodata appears to be a better value because analysts' longer-term estimates for 2027 may be too conservative. With all that cash coming in from its Magnificent Seven customers, it could still have plenty of ways to expand both organically and inorganically over the next two years. So, while and Innodata might both benefit from the secular expansion of the AI market, Innodata's stronger growth, higher profits, and lower valuation make it the better buy. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Yahoo
18-07-2025
- Business
- Yahoo
Innodata Trades 29% Below 52-Week High: Buy, Sell, or Hold the Stock?
Innodata INOD shares closed at $50.10 on Thursday, roughly 29.4% below the 52-week high of $71 it hit on Feb. 21, 2025. INOD shares have appreciated 26.8% year to date (YTD), outperforming the Zacks Computer and Technology sector's return of 8.6% and the Zacks Computer – Services industry's return of 0.9%.Innodata shares have outperformed closest competitors, such as Cognizant CTSH, Infosys INFY and ExlService EXLS YTD, shares of which have dropped 1.8%, 15.8% and 4.3%, respectively, over the same timeframe. Innodata benefits from massive investment promises made by the 'Magnificent 7,' including Microsoft's $80 billion and Meta Platforms' $64-$72 billion. The data engineering 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. INOD Stock's Performance Image Source: Zacks Investment Research Innodata shares are now trading above the 50-day and 200-day moving averages, indicating a bullish trend. INOD Trades Above the 50-Day and 200-day SMAs Image Source: Zacks Investment Research 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. Revenues from the largest customer are expected to decline 5% sequentially in the second quarter, which is a headwind. So, what should investors do with INOD stock? Let's dig deep to find out. Expanding Clientele to Boost INOD's Prospects Innodata benefits from expanding Generative AI (Gen AI) capabilities for enterprises in 2025 and beyond. Contracts with eight Big Tech for Large Language Models (LLMs) data engineering, including five of the 'Magnificent 7' that position INOD for strong growth. Innodata serves the Gen 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 Gen 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 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. INOD's latest Generative AI Test & Evaluation Platform, a new suite designed to help enterprises assess the safety and reliability of LLMs. Built on NVIDIA's NIM microservices, the platform supports hallucination detection, adversarial prompt testing and domain-specific risk benchmarking across text, image, audio and video inputs, helping organizations build more trustworthy AI. Earnings Estimate Revisions Trend Steady for INOD The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 11 cents per share, unchanged over the past 60 days. Innodata reported break-even earnings in the year-ago quarter. Innodata Inc. Price and Consensus Innodata Inc. price-consensus-chart | Innodata Inc. Quote The consensus mark for 2025 earnings is pegged at 69 cents per share, unchanged over the past 60 days, suggesting a 22.47% year-over-year decline. Valuation: INOD Shares Trading at a Premium Innodata 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 5.84X compared with the Zacks Computer Services industry's shares are trading at a premium compared to its closest peers, including Cognizant, Infosys and EXLService. In terms of the forward 12-month P/S, Cognizant, Infosys and EXLService are trading at 1.75X, 3.81X and 3.17X, respectively. Price/Sales Ratio (F12M) Image Source: Zacks Investment Research Conclusion 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 as the INOD stock remains 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 Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report American Noble Gas Inc. (INFY) : Free Stock Analysis Report ExlService Holdings, Inc. (EXLS) : Free Stock Analysis Report Innodata Inc. (INOD) : 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
08-07-2025
- Business
- Yahoo
INOD Stock Expands GenAI Offerings: Can it Drive Enterprise Growth?
Innodata INOD is benefiting from the increasing demand for generative AI, fueling growth in its Digital Data Solutions (DDS) segment. DDS revenues reached $50.8 million in the first quarter of 2025, accounting for over 87% of total revenues. The growth was driven by client wins, deeper engagements with Big Tech and expanding use delivers full-stack GenAI services, including training data creation, reinforcement learning and LLM evaluation. It supports industries such as enterprise tech, healthcare and cloud software, offering domain-specific capabilities across math, chemistry, Arabic and French. This vertical has emerged as a core driver of Innodata's evolving AI service in INOD is being driven by the launch of the Generative AI Test & Evaluation Platform, which helps enterprises assess the safety and reliability of LLMs. Built on NVIDIA's NIM microservices, it enables hallucination detection, adversarial prompt testing and risk benchmarking across formats. MasterClass has been the first charter customer. A broader launch is expected in the second half of 2025 through a global consulting is poised to benefit from the aggressive GenAI investments of the 'Magnificent 7,' with Microsoft committing $80 billion and Meta allocating $64-$72 billion for 2024. These tailwinds are expected to drive deeper enterprise engagements. INOD has secured $8 million in new deals from four Big Tech clients and signed a second statement of work with its largest customer, backed by a separate AI budget in the reported quarter. These developments position Innodata's DDS for sustained momentum ahead. Innodata's DDS business is facing growing competition from TaskUs TASK and Palantir Technologies PLTR, both of which are advancing GenAI is scaling its offerings in model evaluation, data labeling and LLM safety testing, targeting industries like tech, healthcare and finance. Its focus on high-quality annotation and AI assurance tools makes TaskUs a strong competitor in INOD's core is deepening traction with domain-specific LLM platforms and AI operating systems tailored for regulated sectors. Its enterprise deployments and decision-intelligence tools position Plantir to challenge INOD's role as a GenAI enabler. INOD shares have jumped 29% year to date, while the broader Zacks Computer & Technology sector appreciated 8% and the Zacks Computer - Services industry grew 5.3%. Image Source: Zacks Investment Research Innodata stock is trading at a premium, with a forward 12-month Price/Sales of 5.98X compared with the industry's 1.84X. INOD has a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Innodata's 2025 earnings is pegged at 69 cents per share, unchanged over the past 30 days. The figure marks a decline of 22.47% from fiscal 2024's earnings. Innodata Inc. price-consensus-chart | Innodata Inc. Quote Innodata currently carries a Zacks Rank #3 (Hold). 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 Innodata Inc. (INOD) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report TaskUs, Inc. (TASK) : 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
