Wolfpack short ‘deteriorating’ Innodata, says management ‘pumping’ AI promise

Wolfpack Research stated in a post to its site: “We are short Innodata, Inc. (NASDAQ: INOD) because despite management’s pumping that it is ‘delivering the promise of AI to many of the world’s most prestigious companies,’ it is a deteriorating, manual data-entry business driven by offshore labor, not innovation.” The short-selling firm contends that Innodata’s “business has been slowly decaying over the last two decades” and that the company “flat out does not have the money to pivot to AI or anything else.” The firm added: “Prior to the AI pump, INOD had been a perennial $2-$3 stock, partly because over the last decade they have been consistently unprofitable… We expect INOD’s stock to return to its historical levels, especially if there is a dilutive raise.”