--- title: "Could Innodata Become the Next Palantir?" description: "Innodata, a $500 million company, is expanding faster than Palantir and offers a more affordable stock. With a focus on generative AI services and partnerships with major tech companies, Innodata's re" type: "news" locale: "en" url: "https://longbridge.com/en/news/210085796.md" published_at: "2024-07-29T11:15:17.000Z" --- # Could Innodata Become the Next Palantir? > Innodata, a $500 million company, is expanding faster than Palantir and offers a more affordable stock. With a focus on generative AI services and partnerships with major tech companies, Innodata's revenue is expected to increase at a CAGR of 33% from 2023 to 2026. While it faces competition and the volatility of the AI market, analysts believe it has significant upside potential. However, it is unlikely to reach the scale of Palantir. Investors should carefully assess the competitive landscape and market conditions before considering this speculative small-cap stock. **Palantir** (PLTR 2.06%), a data mining and analytics firm that serves the U.S. government and large companies, went public via a direct listing on Sept. 30, 2020. It started trading at $10 and went through some wild swings, but now trades at about $29. The company impressed the bulls with its robust growth, rising profits, and the rapid expansion of its domestic commercial business, which helped reduce its dependence on rigid government contracts. Palantir's revenue rose at a compound annual growth rate (CAGR) of 32% from 2019 to 2023, and analysts forecast its revenue to increase at a CAGR of 20% from 2023 to 2026. It also turned profitable on a generally accepted accounting principles (GAAP) basis in 2023, and analysts expect its net income to rise at a CAGR of 46% over the next three years. Image source: Getty Images. Those growth rates are impressive, but Palantir's stock isn't cheap at 87 times forward earnings and 24 times this year's sales. With a market cap of $64 billion, it could also have less upside potential than small-cap growth stocks in the same sector. So today, let's take a closer look at **Innodata** (INOD 14.09%), a $500 million company that is expanding faster than Palantir and still looks cheap relative to its near-term sales. ## What does Innodata do? Innodata was founded in 1988, and it provides business process, technology, and consulting services along with software tools for creating, managing, using, and distributing digital information. It mainly serves large organizations across the government, aerospace, defense, financial services, and tech sectors. The company went public in 1993, and its revenue only grew at a CAGR of 6% from 1994 to 2019. It ended 2019 at just $1.14 per share -- representing a 32% decline from its split-adjusted IPO price of $1.67 -- as many investors dismissed it as another slow-growth IT services and enterprise software provider. But from 2019 to 2023, Innodata's revenue rose a CAGR of 12%. It expects to generate "at least" 40% organic revenue growth in 2024, and analysts expect its revenue to increase at a CAGR of 33% from 2023 to 2026. That acceleration will mainly be driven by the rollout of new generative AI services for some of the world's top tech companies. Innodata started 2024 with master service agreements in place with five of the "Magnificent Seven" companies. It anticipates it will boost its revenue from three of them this year, and it's "making significant inroads" with the other two. In other words, the expansion of the generative AI market is turning this dusty old IT services company into an exciting growth stock. That's why its shares soared 1,350% over the past five years -- but they still trade at 4 times this year's sales. ## But can Innodata become as big as Palantir? Innodata looks cheap relative to its sales growth, but it hasn't been profitable on a GAAP basis over the past three years. On the bright side, it squeezed out positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $5 million in 2023, and analysts expect that figure to rise at a CAGR of 64% to $22 million by 2026 as it locks in more customers and scales up its generative AI business. That's a promising outlook, but Innodata still faces plenty of competition from IT services giants like **Accenture** (NYSE: ACN) and digital transformation specialists like **Globant** (NYSE: GLOB). Its new Magnificent Seven customers could also abruptly reduce their generative AI spending if the red-hot market cools off. If Innodata meets Wall Street's target of generating $205 million in revenue in 2026 and trades at a more optimistic 10 times sales by then, it would be worth more than $2 billion. That would represent a near-four-bagger gain from its current price, but it would still be much smaller than Palantir and other bigger players in the IT services space. So while it's doubtful Innodata will become the next Palantir anytime soon, it could have more upside potential as it expands its generative AI business. That said, investors should carefully gauge the competitive headwinds, its ability to stabilize its earnings growth, and the health of the AI market before buying this speculative small-cap stock. ### Related Stocks - [INOD.US - Innodata](https://longbridge.com/en/quote/INOD.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 市場對 Innodata Inc 是看漲還是看跌？ | Innodata Inc（紐約證券交易所代碼：INOD）的空頭頭寸增加了 5.64%，目前有 465 萬股被賣空，佔可用股份的 15.18%。交易者平均需要 2.8 天來平倉這些空頭頭寸。空頭頭寸的增加通常表明市場情緒偏向看跌。與同行相比， | [Link](https://longbridge.com/en/news/276456140.md) | | Palantir 與 Innodata 攜手合作進行 AI Rodeo 分析 | Innodata Inc. 的股價上漲了 12.64%，原因是被 Palantir Technologies 選中提供訓練數據和數據工程，以支持基於人工智能的牛仔競技視頻分析。此次合作涉及對數千小時的牛仔競技錄像進行標註，以增強人工智能系統 | [Link](https://longbridge.com/en/news/274192439.md) | | Innodata 贏得美國政府人工智能解決方案合同 | Innodata Inc. 被選為 2026 年 1 月 15 日宣佈的美國政府人工智能解決方案合同的合格競爭者。此項獎勵突顯了該公司致力於提供人工智能和數據工程解決方案，以增強美國的防禦能力。原始內容於 2026 年 1 月 20 日通過 | [Link](https://longbridge.com/en/news/273091740.md) | | Innodata Inc. 將宣佈 2025 年第四季度及全年財務業績 | Innodata Inc. 將於 2026 年 2 月 26 日市場收盤後公佈其 2025 財年第四季度和全年業績。業績將在其網站上發佈，並且當天東部時間下午 5:00 將舉行投資者電話會議，會議將通過網絡直播進行。此公告僅供參考，不應被視 | [Link](https://longbridge.com/en/news/274982196.md) | | 關於 Innodata 的市盈率分析 | Innodata Inc.（納斯達克代碼：INOD）股票目前價格為 63.10 美元，今天下跌 2.88%，但過去一個月上漲 22.50%，過去一年上漲 83.12%。該公司的市盈率為 64.33，高於行業平均水平 39.83，儘管表現預期 | [Link](https://longbridge.com/en/news/272317765.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.