Stocks of Palantir Technologies (PLTR 5.81%) are falling today in spite of gains for the wider market.

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

Palantir stock quote┬áhas actually been unpredictable in current months and has seen particularly turbulent trading following its fourth-quarter report in mid-February, so it’s hard to state how much of today’s motion is connected to the news of the Jacobs partnership or various other catalysts at play.

It’s possible that some capitalists see partnering with Jacobs– rather than creating inside established, totally owned options– as a negative indication regarding the business’s development leads.

A graph line and arrow relocating down.
Image resource: Getty Images.

So what
Jacobs released a news release today announcing that it had actually formed a collaboration with Palantir to create information and technology options for the facilities as well as national security markets. The very first software created by the partners will certainly be a data-analytics offering for public- and private-sector consumers in water-infrastructure services. It will certainly focus on utilizing information evaluation to improve the operation and upkeep of water and also wastewater therapy plants.

That barely sounds like trouble in its very own right, but investors may be attracting adverse inferences regarding what the cooperation recommends concerning Palantir’s capacities and also development outlook.

Palantir stock has actually slipped about 17% because the firm reported its fourth-quarter outcomes on Feb. 17. It managed to grow income 34% year over year to reach $433 million, however investors were generally disappointed to see income from government clients expand only 26% year over year in the duration.

Instead of checking out the new collaboration with Jacobs as a chance to speed up growth in the infrastructure-services area, it appears the market could be let down that Palantir isn’t prepping services on its own or working with an additional prospective companion.

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