Stocks of Palantir Technologies (PLTR 5.81%) are falling 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 more comprehensive market. The company’s stock was down roughly 4.8% as of 12:40 p.m. ET Wednesday in conjunction with the announcement of a brand-new partnership with Jacobs Engineering Group (J 0.14% ). Meanwhile, Jacobs’ share rate was up roughly 2.8%.

Palantir stock price┬áhas actually been unstable in current months and has actually seen particularly unstable trading following its fourth-quarter report in mid-February, so it’s tough to state just how much these days’s activity is linked to the news of the Jacobs partnership or various other drivers at play.

It’s possible that some capitalists see partnering with Jacobs– as opposed to developing internally established, fully owned solutions– as a negative sign about the business’s development prospects.

A chart line and also arrowhead moving down.
Image source: Getty Images.

So what
Jacobs released a news release today announcing that it had actually developed a partnership with Palantir to produce data and innovation solutions for the framework and nationwide safety markets. The very first software application generated by the partners will certainly be a data-analytics offering for public- and private-sector clients in water-infrastructure solutions. It will certainly concentrate on using information evaluation to enhance the procedure as well as upkeep of water as well as wastewater therapy plants.

That rarely sounds like problem in its very own right, but financiers may be drawing adverse inferences about what the collaboration recommends concerning Palantir’s capabilities and growth overview.

Palantir stock has actually slipped roughly 17% since the company reported its fourth-quarter results on Feb. 17. It took care of to expand profits 34% year over year to reach $433 million, however financiers were extensively disappointed to see revenue from federal government customers grow only 26% year over year in the duration.

As opposed to seeing the new partnership with Jacobs as an opportunity to accelerate growth in the infrastructure-services area, it seems the marketplace could be dissatisfied that Palantir isn’t preparing solutions on its own or dealing with another possible partner.

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