Shares of Palantir Technologies (PLTR 5.81%) are dropping today despite gains for the broader market.

Shares of Palantir Technologies (PLTR 5.81%) are falling today regardless of gains for the more comprehensive market. The business’s stock was down approximately 4.8% as of 12:40 p.m. ET Wednesday together with the statement of a brand-new collaboration with Jacobs Engineering Team (J 0.14% ). On the other hand, Jacobs’ share cost was up about 2.8%.

Palantir stock price today has actually been volatile in current months as well as has seen specifically stormy trading following its fourth-quarter report in mid-February, so it’s difficult to say how much of today’s motion is connected to the information of the Jacobs partnership or various other stimulants at play.

It’s feasible that some financiers see partnering with Jacobs– rather than developing internally created, fully owned services– as an adverse indication regarding the firm’s development potential customers.

A chart line and also arrowhead moving down.
Picture resource: Getty Images.

So what
Jacobs released a press release today introducing that it had actually developed a partnership with Palantir to create information as well as innovation options for the facilities and national safety markets. The first software application created by the partners will certainly be a data-analytics offering for public- and private-sector clients in water-infrastructure services. It will certainly concentrate on using data evaluation to enhance the operation and also maintenance of water and also wastewater therapy plants.

That barely seems like bad news in its own right, however capitalists might be attracting unfavorable inferences regarding what the partnership recommends regarding Palantir’s capabilities as well as growth outlook.

Palantir stock has slid about 17% given that the firm reported its fourth-quarter results on Feb. 17. It took care of to grow revenue 34% year over year to get to $433 million, but investors were extensively let down to see earnings from federal government customers grow only 26% year over year in the period.

As opposed to viewing the brand-new partnership with Jacobs as an opportunity to accelerate growth in the infrastructure-services room, it seems the marketplace could be let down that Palantir isn’t readying options on its own or working with an additional prospective partner.

Palantir currently has a market capitalization of approximately $24 billion and is valued roughly 12 times this year’s anticipated sales and 59 times expected modified earnings.