Shares of Palantir Technologies (PLTR 5.81%) are dropping today regardless 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 about 4.8% since 12:40 p.m. ET Wednesday together with the announcement of a new collaboration with Jacobs Engineering Team (J 0.14% ). On the other hand, Jacobs’ share rate was up about 2.8%.

Palantir stock price today┬áhas been unpredictable in current months and has actually seen particularly turbulent trading following its fourth-quarter record in mid-February, so it’s challenging to say just how much these days’s movement is linked to the information of the Jacobs partnership or various other stimulants at play.

It’s possible that some capitalists see partnering with Jacobs– rather than producing internally developed, fully owned services– as a negative sign regarding the company’s growth leads.

A chart line and also arrow moving down.
Photo source: Getty Images.

So what
Jacobs released a press release today revealing that it had created a collaboration with Palantir to produce data as well as innovation remedies for the infrastructure and national safety and security markets. The very first software program produced by the partners will be a data-analytics offering for public- as well as private-sector consumers in water-infrastructure services. It will certainly focus on using data analysis to improve the procedure as well as maintenance of water as well as wastewater therapy plants.

That hardly sounds like problem in its own right, however investors might be drawing unfavorable inferences concerning what the partnership recommends concerning Palantir’s capabilities as well as growth overview.

Palantir stock has actually slipped approximately 17% given that the firm reported its fourth-quarter results on Feb. 17. It took care of to grow revenue 34% year over year to reach $433 million, however investors were extensively disappointed to see revenue from government consumers expand only 26% year over year in the period.

Instead of seeing the brand-new partnership with Jacobs as a chance to speed up expansion in the infrastructure-services area, it seems the marketplace could be disappointed that Palantir isn’t readying services on its own or collaborating with one more possible partner.

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