Meta shares rose Wednesday premarket after Cantor Fitzgerald lifted its price target to $860 from $680, while Innodata jumped 14.61% Tuesday on a Hunterbrook report linking the AI data company to Meta's Muse AI agent. Innodata closed at $69.97 after touching an intraday high of $74.93, marking its strongest one-day gain since May, and added roughly 1% to 4% in extended and early premarket trading.
The Hunterbrook report, based on interviews with former employees and hiring records, suggested Meta is Innodata's largest customer and that a new Innodata program focused on "personalization of long-horizon agents" may be tied to Muse. Hunterbrook Capital disclosed a long position in INOD. Innodata's largest customer represented about 37% of Q2 revenue, down from 56% in Q1, while a second large technology customer accounted for roughly 34%. The company reported Q2 revenue of $92.1 million, up 58% year over year, diluted EPS of $0.41, adjusted EBITDA of $25.4 million, and adjusted gross margin of 49%.
Muse launched September 8 and quickly climbed to the top of U.S. app-download rankings, with Reuters reporting 2.8 million downloads in its first 12 days. Wall Street has grown more bullish: Jefferies has an $875 target, JPMorgan is Overweight with an $820 target, KeyBanc has a $900 target, and BofA Securities is at $810. Shopify has integrated Shop Pay with Muse, while Amazon has blocked Muse from shopping on its platform citing privacy, security, and unauthorized access concerns. Meta's latest reported quarterly revenue grew 28% year over year to $60.8 billion, though earnings missed Wall Street expectations. Neither Meta nor Innodata has confirmed the Muse connection.
