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

Shares of Palantir Technologies (PLTR 5.81%) are dropping today in spite of gains for the broader market. The company’s stock was down roughly 4.8% as of 12:40 p.m. ET Wednesday together with the announcement of a brand-new collaboration with Jacobs Design Group (J 0.14% ). Meanwhile, Jacobs’ share price was up roughly 2.8%.

Palantir stock quote┬áhas been unstable in current months and has seen specifically turbulent trading following its fourth-quarter report in mid-February, so it’s challenging to state how much of today’s activity is linked to the information of the Jacobs collaboration or various other drivers at play.

It’s possible that some capitalists see partnering with Jacobs– as opposed to creating internally established, fully possessed solutions– as a negative indication regarding the business’s development leads.

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

So what
Jacobs published a press release today introducing that it had actually formed a partnership with Palantir to create information and modern technology remedies for the framework as well as national safety markets. The very first software application generated by the companions will certainly be a data-analytics offering for public- and also private-sector clients in water-infrastructure services. It will concentrate on making use of data analysis to boost the operation as well as maintenance of water as well as wastewater therapy plants.

That rarely seems like bad news in its own right, yet investors might be attracting adverse inferences concerning what the partnership recommends about Palantir’s capabilities and growth outlook.

Palantir stock has actually slipped about 17% because the firm reported its fourth-quarter results on Feb. 17. It took care of to expand income 34% year over year to reach $433 million, but capitalists were broadly let down to see income from government consumers expand just 26% year over year in the duration.

Rather than watching the brand-new partnership with Jacobs as an opportunity to speed up development in the infrastructure-services space, it seems the marketplace could be let down that Palantir isn’t preparing options on its own or working with one more prospective companion.

Palantir now has a market capitalization of roughly $24 billion and also is valued roughly 12 times this year’s anticipated sales and also 59 times expected adjusted revenues.