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

Shares of Palantir Technologies (PLTR 5.81%) are dropping today in spite of gains for the wider market. The firm’s stock was down approximately 4.8% as of 12:40 p.m. ET Wednesday together with the news of a new partnership with Jacobs Design Group (J 0.14% ). Meanwhile, Jacobs’ share cost was up roughly 2.8%.

Palantir stock forecast has been unpredictable in current months and also has actually seen especially stormy trading following its fourth-quarter report in mid-February, so it’s difficult to state just how much these days’s movement is attached to the information of the Jacobs partnership or various other catalysts at play.

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

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

So what
Jacobs published a news release today announcing that it had developed a collaboration with Palantir to develop information and also technology remedies for the infrastructure and also nationwide safety markets. The very first software program generated by the partners will certainly be a data-analytics offering for public- and private-sector consumers in water-infrastructure services. It will certainly concentrate on making use of data evaluation to boost the operation and maintenance of water and also wastewater therapy plants.

That hardly sounds like trouble in its own right, however investors could be attracting negative reasonings regarding what the partnership recommends about Palantir’s capacities as well as growth expectation.

Palantir stock has actually slipped approximately 17% since the company reported its fourth-quarter results on Feb. 17. It managed to expand earnings 34% year over year to get to $433 million, but capitalists were broadly dissatisfied to see profits from federal government consumers grow only 26% year over year in the period.

As opposed to viewing the new partnership 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 readying solutions on its own or working with one more potential companion.

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