Stocks of Palantir Technologies (PLTR 5.81%) are dropping today in spite of gains for the more comprehensive market.

Shares of Palantir Technologies (PLTR 5.81%) are dropping today regardless of gains for the wider market. The company’s stock was down about 4.8% as of 12:40 p.m. ET Wednesday along with the statement of a new collaboration with Jacobs Engineering Group (J 0.14% ). On the other hand, Jacobs’ share rate was up roughly 2.8%.

Palantir stock price has actually been volatile in recent months and also has actually seen particularly turbulent trading following its fourth-quarter report in mid-February, so it’s challenging to say just how much these days’s motion is connected to the news of the Jacobs collaboration or various other catalysts at play.

It’s possible that some financiers see partnering with Jacobs– rather than developing inside developed, fully owned solutions– as an adverse indicator regarding the firm’s growth potential customers.

A chart line and also arrow relocating down.
Picture resource: Getty Images.

So what
Jacobs published a press release today revealing that it had actually formed a collaboration with Palantir to create data as well as innovation services for the framework and nationwide safety markets. The first software produced by the partners will be a data-analytics offering for public- as well as private-sector consumers in water-infrastructure solutions. It will certainly concentrate on making use of information analysis to enhance the procedure as well as maintenance of water and also wastewater therapy plants.

That hardly sounds like bad news in its very own right, yet capitalists might be attracting unfavorable reasonings concerning what the partnership suggests concerning Palantir’s capabilities and development outlook.

Palantir stock has slipped approximately 17% because the business reported its fourth-quarter results on Feb. 17. It managed to expand income 34% year over year to get to $433 million, but capitalists were generally dissatisfied to see revenue from government consumers grow just 26% year over year in the period.

Instead of viewing the new partnership with Jacobs as a possibility to increase development in the infrastructure-services area, it seems the market could be disappointed that Palantir isn’t prepping remedies on its own or working with one more potential companion.

Palantir currently has a market capitalization of approximately $24 billion and also is valued approximately 12 times this year’s anticipated sales and also 59 times anticipated adjusted incomes.