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

Shares of Palantir Technologies (PLTR 5.81%) are dropping today despite gains for the wider market. The company’s stock was down approximately 4.8% as of 12:40 p.m. ET Wednesday together with the news of a new partnership with Jacobs Engineering Team (J 0.14% ). At the same time, Jacobs’ share cost was up roughly 2.8%.

Palantir stock news has actually been volatile in current months and also has actually 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 collaboration or other stimulants at play.

It’s feasible that some capitalists see partnering with Jacobs– instead of developing internally established, completely had options– as a negative sign concerning the company’s growth prospects.

A graph line as well as arrow relocating down.
Picture source: Getty Images.

So what
Jacobs published a news release today revealing that it had developed a collaboration with Palantir to create data as well as modern technology services for the framework and national security markets. The first software program produced by the partners will be a data-analytics offering for public- and private-sector customers in water-infrastructure solutions. It will concentrate on using data evaluation to enhance the procedure and upkeep of water and wastewater therapy plants.

That rarely sounds like problem in its very own right, yet investors could be drawing adverse inferences regarding what the cooperation suggests concerning Palantir’s abilities as well as growth expectation.

Palantir stock has slipped approximately 17% given that the business reported its fourth-quarter outcomes on Feb. 17. It managed to expand earnings 34% year over year to reach $433 million, but capitalists were broadly dissatisfied to see earnings from federal government customers grow only 26% year over year in the duration.

Instead of watching the new collaboration with Jacobs as a possibility to increase expansion in the infrastructure-services space, it seems the market could be disappointed that Palantir isn’t preparing remedies on its own or collaborating with an additional prospective partner.

Palantir currently has a market capitalization of roughly $24 billion as well as is valued around 12 times this year’s anticipated sales as well as 59 times expected adjusted profits.