Markets

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

Shares of Palantir Technologies (PLTR 5.81%) are dropping today in spite 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 statement of a new partnership with Jacobs Design Team (J 0.14% ). On the other hand, Jacobs’ share cost was up about 2.8%.

Palantir stock price has been volatile in current months and has actually seen especially rough trading following its fourth-quarter record in mid-February, so it’s difficult to state how much these days’s motion is connected to the news of the Jacobs partnership or other stimulants at play.

It’s feasible that some capitalists see partnering with Jacobs– instead of developing inside created, completely had options– as an unfavorable indicator regarding the firm’s development potential customers.

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

So what
Jacobs released a news release today introducing that it had formed a collaboration with Palantir to produce data and also technology options for the infrastructure as well as national protection markets. The first software program generated by the companions will be a data-analytics offering for public- and also private-sector customers in water-infrastructure services. It will focus on using information analysis to boost the procedure and upkeep of water and also wastewater treatment plants.

That rarely seems like bad news in its very own right, but investors could be drawing unfavorable reasonings regarding what the collaboration suggests regarding Palantir’s capacities as well as development outlook.

Palantir stock has slipped roughly 17% because the company reported its fourth-quarter results on Feb. 17. It managed to grow profits 34% year over year to reach $433 million, yet capitalists were broadly dissatisfied to see income from federal government customers expand just 26% year over year in the period.

As opposed to checking out the new collaboration with Jacobs as an opportunity to increase development in the infrastructure-services space, it appears the market could be let down that Palantir isn’t prepping solutions on its own or dealing with one more potential companion.

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