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Stock impact report

Missed Rally, Same Reality: Innodata's Scalability Problem Persists [Seeking Alpha]

Innodata Inc. (INOD) 
US:NASDAQ Investor Relations: innodata.com/investors
Company Research Source: Seeking Alpha
INOD's service-based, human-intensive model limits scalability and margin expansion, making current price-to-sales multiples difficult to justify for new entries. Customer concentration and competition from both service providers and big tech vertical integration continue to pose significant risks to INOD's outlook. Existing holders should consider profit-taking or covered calls; new investors should wait for valuations closer to 4x sales for a better risk-reward balance. hamzaturkkol/iStock via Getty Images My June thesis on Innodata ( INOD ) was conservative and saw three core drags against a bullish view. I was wary of rich valuations (trading at premium multiples relative to Accenture and TELUS International), execution risk (service-based model This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this Show less Read more
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