Nov. 16, 2025 2:14 AM ETInnodata Inc. (INOD) StockINODThe Alpha Analyst2.28K FollowersCommentsInnodata remains rated hold due to elevated valuations, despite recent improvements in guidance execution and federal market expansion.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 ImagesMy 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 modelThis article was written byThe Alpha Analyst2.28K FollowersI am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice President at Barclays, I led teams in model validation, stress testing, and regulatory finance, developing a deep expertise in both fundamental and technical analysis. Alongside my research partner (also my wife), I co-author investment research, combining our complementary strengths to deliver high-quality, data-driven insights. Our approach blends rigorous risk management with a long-term perspective on value creation. We have a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis, aiming to provide actionable ideas for investors seeking to outperform the market.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 article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments