Innodata’s stock struggled last month, dropping 23% due to fears of the AI bubble bursting and disappointing earnings. Revenue growth slowed to 20%, with adjusted EBITDA up 17% to $16.2 million. CEO highlighted new contracts worth $42 million and a Federal Practice launch, with full-year revenue forecast at 45% or more.

The stock briefly rose 7% post-earnings but resumed its decline due to a broader sell-off in AI stocks. Innodata, profitable but small, is more susceptible to market sentiment swings. Revenue recognition can be uncertain, but its AI-focused services offer potential for growth, making it an interesting option for AI investors.

For investors considering Innodata, the Motley Fool recommends looking at other top 10 stocks for better returns. Not part of their list, but with a market cap under $2 billion, Innodata has potential for growth if it can deliver strong revenue growth. Stock Advisor’s returns have outperformed the S&P 500, making it a valuable resource for investment decisions.

Read more at Nasdaq: Why Innodata Stock Lost 23% in November