TLDR
- Innodata stock jumped 14.61% Tuesday to $69.97, its strongest one-day gain since May.
- The rally followed a Hunterbrook report suggesting Innodata may be working on Meta’s new Muse AI agent.
- Hunterbrook says Meta appears to be Innodata’s largest customer, although neither company has confirmed the Muse connection.
- Innodata’s Q2 revenue rose 58% year over year to $92.1 million, while diluted EPS reached $0.41.
- The main risks are customer concentration, valuation and uncertainty over whether the Muse work is actually tied to Innodata.
Innodata (INOD) stock jumped 14.61% Tuesday to close at $69.97 after touching an intraday high of $74.93. The rally followed a Hunterbrook report linking the AI data company to Meta’s fast-growing Muse assistant.
The stock added another roughly 1% to 4% in extended and early premarket trading depending on the venue. That extends a rally that has pushed INOD up about 37% in 2026.
Hunterbrook said interviews with former employees and reviews of hiring records indicate Meta is Innodata’s largest customer. The firm believes a new Innodata program involving the “personalization of long-horizon agents” could be related to Muse.
Neither Meta nor Innodata has confirmed that connection. Hunterbrook Capital also disclosed that it was long INOD when the report was published.
Meta Muse Link Drives the Rally
Meta launched Muse on Sept. 8, and the agent quickly climbed to the top of U.S. app-store rankings. Reuters reported 2.8 million downloads within its first 12 days.
Muse is designed to complete multi-step tasks such as email, travel bookings and online transactions. Those capabilities require large amounts of training, evaluation and personalization data.
That is where Innodata potentially fits. The company provides AI training data, evaluation services and human review for large technology customers.
Hunterbrook said Innodata’s largest customer represented about 37% of Q2 revenue, down from 56% in Q1. A second large technology customer increased its contribution to roughly 34%.
The report also argued that concerns Meta might shift work toward Scale AI may have been overdone. A former Innodata employee told Hunterbrook that external work with Meta had not appeared to shrink following Meta’s investment in Scale.
Strong Growth Supports the AI Story
Innodata’s financial results already show rapid growth. Second-quarter revenue reached $92.1 million, up 58% from a year earlier.
Diluted EPS came in at $0.41, while adjusted EBITDA reached $25.4 million. Adjusted gross margin expanded to 49%.
That gives the Muse speculation more weight than a purely narrative-driven rally. Innodata is already generating meaningful revenue growth from AI-related work.
Still, the customer concentration risk is important. If one major client reduces spending, Innodata could see a sharp effect on revenue and margins.
Valuation is another issue after Tuesday’s jump. The stock remains well below its June high near $121.50, but expectations could rise quickly if investors start pricing in Muse-related growth before the relationship is confirmed.
For now, the clearest catalyst is the Hunterbrook report rather than any new contract announcement from Meta or Innodata. Investors will be watching for confirmation that Innodata is directly involved with Muse and whether that work becomes financially material.
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