Stock Rally: Why Innodata shares jumped 14.6% in one session

Innodata shares jumped 14.6% to $69.97 on September 22, marking their strongest single-day gain since May. The rally followed a Hunterbrook report suggesting Innodata may be involved in training Meta’s new AI assistant, Muse. (Sources: TradingView, GuruFocus)

Hunterbrook said former employees and job listings pointed to Meta as Innodata's largest customer. It estimated the account generated about $146 million, or 58% of Innodata's 2025 sales. The report linked Innodata's work on the "personalization of long-horizon agents" with Meta's Muse AI assistant. However, neither Meta nor Innodata confirmed the association, making the claim unverified.

Meta launched Muse on September 8 as a consumer AI agent capable of browsing the web, managing email and calendars and completing tasks. Hunterbrook said Muse's early traction could potentially increase demand for the kind of AI training and human-review services provided by Innodata. The company reported $92.1 million in second-quarter revenue, up 58% year-on-year.

GuruFocus said Innodata's September 22 closing price of $69.97 was 19.4% above its GF Value estimate of $58.59. Its analysis put Innodata's trailing P/E at 53 times, compared with a five-year median of 59 times. GuruFocus also gave the company a GF Score of 84/100, with growth scoring 9/10 and profitability 5/10.

Innodata is preparing for a leadership transition effective September 30. Rahul Singhal is scheduled to become President and CEO, while founder Jack Abuhoff will move into the role of Executive Chairman. The company also appointed retired Admiral Michael S. Rogers, former NSA director and commander of U.S. Cyber Command, to its board as it expands its focus on federal, cybersecurity and AI-safety initiatives.

Innodata's recent performance combines strong operating growth with heightened investor interest in its potential exposure to major AI platforms. The company reported 57.8% year-on-year revenue growth and nearly doubled quarterly net profit in the June quarter. At the same time, the Meta-Muse connection remains unconfirmed and valuation metrics have become an important part of the stock's investment debate.