Innodata Plunges 9.22% Amid Market Shifts

Innodata's stock price dropped by 9.22% in pre-market trading on April 3, 2025, reflecting significant investor concern and potential market shifts.

Investor Saul, known for his strategic portfolio management, has been closely monitoring Innodata. He highlights the company's customer concentration risk, noting that diversification across major AI players could drive future growth. Despite this risk, Saul praises Innodata's execution and relatively lower valuation compared to other AI-focused stocks, suggesting it could rebound strongly once market conditions improve.

Saul's portfolio update also mentions other stocks, including TGTX, which he sold due to overvaluation, and HIMS, which he considers attractive after its recent decline. He emphasizes the importance of valuation models and market timing in his investment strategy, using a formula that combines next twelve months' free cash flow (FCF) and his methodology score to determine potential returns.