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

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

Palantir stock price┬áhas been volatile in current months and has seen especially rough trading following its fourth-quarter report in mid-February, so it’s difficult to claim just how much these days’s motion is linked to the information of the Jacobs collaboration or various other catalysts at play.

It’s feasible that some financiers see partnering with Jacobs– as opposed to developing internally developed, fully possessed options– as an unfavorable sign about the company’s development potential customers.

A graph line and arrow relocating down.
Photo source: Getty Images.

So what
Jacobs released a news release today revealing that it had developed a collaboration with Palantir to develop data and modern technology services for the infrastructure and nationwide security markets. The first software application produced by the partners will certainly be a data-analytics offering for public- and also private-sector consumers in water-infrastructure solutions. It will concentrate on making use of information analysis to boost the procedure and upkeep of water and wastewater therapy plants.

That hardly seems like trouble in its very own right, however capitalists might be attracting unfavorable reasonings concerning what the collaboration recommends about Palantir’s abilities and also development expectation.

Palantir stock has actually slipped about 17% considering that the firm reported its fourth-quarter outcomes on Feb. 17. It handled to expand earnings 34% year over year to get to $433 million, yet capitalists were generally let down to see revenue from federal government customers grow only 26% year over year in the period.

Instead of watching the new collaboration with Jacobs as a possibility to increase development in the infrastructure-services space, it appears the market could be dissatisfied that Palantir isn’t prepping solutions by itself or collaborating with an additional possible partner.

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