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

Shares of Palantir Technologies (PLTR 5.81%) are dropping today despite gains for the wider market. The firm’s stock was down approximately 4.8% as of 12:40 p.m. ET Wednesday along with the announcement of a new partnership with Jacobs Engineering Team (J 0.14% ). At the same time, Jacobs’ share price was up roughly 2.8%.

Palantir stock price prediction┬áhas actually been unpredictable in current months and also has actually seen specifically unstable trading following its fourth-quarter record in mid-February, so it’s tough to state how much of today’s motion is linked to the information of the Jacobs partnership or other drivers at play.

It’s possible that some financiers see partnering with Jacobs– instead of developing inside established, totally had services– as an unfavorable indication about the firm’s development potential customers.

A graph line as well as arrow relocating down.
Picture source: Getty Images.

So what
Jacobs released a press release today introducing that it had formed a partnership with Palantir to create data and modern technology services for the framework and also national safety markets. The first software application created by the partners will be a data-analytics offering for public- and also private-sector clients in water-infrastructure services. It will certainly focus on utilizing data analysis to enhance the operation and upkeep of water and also wastewater therapy plants.

That barely sounds like trouble in its own right, however financiers could be drawing adverse reasonings concerning what the collaboration suggests about Palantir’s capabilities and also growth outlook.

Palantir stock has slipped roughly 17% given that the company reported its fourth-quarter results on Feb. 17. It took care of to expand income 34% year over year to reach $433 million, however financiers were broadly disappointed to see earnings from federal government customers expand just 26% year over year in the period.

As opposed to watching the brand-new collaboration with Jacobs as a chance to speed up growth in the infrastructure-services room, it appears the market could be let down that Palantir isn’t readying solutions by itself or working with an additional potential partner.

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