AI stock Innodata crashes 25% on job cuts, lost contract

Innodata, a trendy AI stock that hit a $1 billion market cap in the past two years of AI euphoria, crashed by over 25% yesterday after it fired 550 employees. The drastic cut spooked investors that the company might have lost its most important customer. Indeed, termination emails blamed the wind-down of a business assignment from a customer. Investors sold down the market cap of INOD — common shares that trade on the Nasdaq despite the company’s substantial overseas presence — by $500 million within a single trading session.

Source: Protos