Can Innodata Stock Recover If Markets Fall?
Innodata (INOD) stock is down 9.5% in 5 trading days. The recent slide reflects renewed concerns around slowing growth in its AI data solutions and broader AI market sentiment, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Innodata stands today.
- Size: Innodata is a $1.8 Bil company with $238 Mil in revenue currently trading at $57.61.
- Fundamentals: Last 12 month revenue growth of 73.6% and operating margin of 16.9%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.48
- Valuation: Innodata stock is currently trading at P/E multiple of 54.5 and P/EBIT multiple of 45.6
- Has returned (median) 31.9% within a year following sharp dips since 2010. See INOD Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell INOD Stock
That brings us to the key consideration for investors worried about this fall: how resilient is INOD stock if markets turn south? This is where our downturn resilience framework comes in. Suppose INOD stock falls another 20-30% to $40 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- INOD stock fell 74.4% from a high of $11.19 on 2 November 2021 to $2.86 on 20 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 26 May 2023
- Since then, the stock increased to a high of $93.19 on 8 October 2025 , and currently trades at $57.61
| INOD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -74.4% | -25.4% |
| Time to Full Recovery | 157 days | 464 days |
2020 Covid Pandemic
- INOD stock fell 36.6% from a high of $1.23 on 3 January 2020 to $0.78 on 1 April 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 May 2020
| INOD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.6% | -33.9% |
| Time to Full Recovery | 51 days | 148 days |
2018 Correction
- INOD stock fell 63.3% from a high of $2.45 on 1 January 2017 to $0.90 on 28 June 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 19 August 2020
| INOD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -63.3% | -19.8% |
| Time to Full Recovery | 418 days | 120 days |
2008 Global Financial Crisis
- INOD stock fell 76.8% from a high of $6.25 on 7 January 2008 to $1.45 on 21 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 September 2009
| INOD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -76.8% | -56.8% |
| Time to Full Recovery | 294 days | 1,480 days |
Feeling jittery about INOD stock? Consider portfolio approach.
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