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

Shares of Palantir Technologies (PLTR 5.81%) are falling today in spite of gains for the more comprehensive market. The firm’s stock was down approximately 4.8% as of 12:40 p.m. ET Wednesday along with the statement of a brand-new collaboration with Jacobs Engineering Group (J 0.14% ). On the other hand, Jacobs’ share rate was up approximately 2.8%.

Palantir stock quote┬áhas actually been unpredictable in recent months and has seen especially unstable trading following its fourth-quarter report in mid-February, so it’s challenging to state how much these days’s motion is connected to the information of the Jacobs partnership or various other stimulants at play.

It’s feasible that some financiers see partnering with Jacobs– instead of producing inside created, completely owned services– as an adverse sign about the firm’s growth prospects.

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

So what
Jacobs released a news release today introducing that it had created a collaboration with Palantir to develop data and also innovation solutions for the facilities and nationwide safety markets. The initial software application produced by the companions will certainly be a data-analytics offering for public- and also private-sector customers in water-infrastructure solutions. It will certainly focus on making use of data evaluation to improve the procedure and maintenance of water and wastewater treatment plants.

That rarely sounds like bad news in its very own right, yet investors could be attracting adverse reasonings concerning what the collaboration recommends regarding Palantir’s capabilities and also development expectation.

Palantir stock has actually slid about 17% considering that the business reported its fourth-quarter outcomes on Feb. 17. It handled to grow earnings 34% year over year to reach $433 million, yet investors were extensively let down to see earnings from government customers grow just 26% year over year in the period.

Rather than watching the brand-new collaboration with Jacobs as a possibility to increase expansion in the infrastructure-services area, it seems the marketplace could be let down that Palantir isn’t prepping remedies on its own or working with an additional possible partner.

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