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

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Shares of Palantir Technologies (PLTR 5.81%) are dropping today regardless of gains for the wider market. The firm’s stock was down roughly 4.8% since 12:40 p.m. ET Wednesday in conjunction with the announcement of a new collaboration with Jacobs Design Group (J 0.14% ). At the same time, Jacobs’ share rate was up roughly 2.8%.

Palantir stock price┬áhas actually been unstable in current months and also has actually seen specifically rough trading following its fourth-quarter record in mid-February, so it’s hard to state just how much of today’s movement is attached to the information of the Jacobs partnership or other catalysts at play.

It’s possible that some investors see partnering with Jacobs– instead of creating inside developed, totally had solutions– as an unfavorable indicator concerning the firm’s growth prospects.

A chart line as well as arrowhead moving down.
Image source: Getty Images.

So what
Jacobs published a news release today announcing that it had created a partnership with Palantir to produce information as well as technology options for the infrastructure and national safety and security markets. The initial software program produced by the companions will be a data-analytics offering for public- and also private-sector clients in water-infrastructure solutions. It will certainly focus on using data evaluation to enhance the procedure as well as upkeep of water and also wastewater therapy plants.

That rarely seems like trouble in its own right, however financiers could be attracting unfavorable reasonings regarding what the partnership suggests concerning Palantir’s abilities and also development expectation.

Palantir stock has actually slid approximately 17% because the company reported its fourth-quarter results on Feb. 17. It handled to expand revenue 34% year over year to get to $433 million, yet financiers were broadly let down to see revenue from federal government consumers expand only 26% year over year in the duration.

Rather than seeing the new collaboration with Jacobs as a chance to accelerate growth in the infrastructure-services area, it appears the market could be let down that Palantir isn’t prepping options on its own or collaborating with one more possible companion.

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

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