Shares of Palantir Technologies (PLTR 5.81%) are falling today regardless of gains for the wider 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% as of 12:40 p.m. ET Wednesday along with the news of a brand-new collaboration with Jacobs Design Team (J 0.14% ). At the same time, Jacobs’ share price was up approximately 2.8%.

Palantir stock news┬áhas actually been unstable in current months as well as has seen particularly stormy trading following its fourth-quarter report in mid-February, so it’s challenging to state how much of today’s motion is attached to the information of the Jacobs partnership or various other drivers at play.

It’s possible that some investors see partnering with Jacobs– rather than developing inside established, completely owned options– as a negative indication regarding the business’s growth leads.

A chart line and also arrowhead relocating down.
Picture source: Getty Images.

So what
Jacobs published a press release today revealing that it had actually developed a partnership with Palantir to produce information as well as innovation options for the infrastructure and nationwide safety markets. The first software created by the companions will certainly be a data-analytics offering for public- and also private-sector consumers in water-infrastructure solutions. It will certainly focus on using information evaluation to enhance the procedure and maintenance of water and also wastewater therapy plants.

That rarely sounds like problem in its own right, yet financiers could be drawing negative reasonings about what the collaboration suggests regarding Palantir’s abilities and also growth overview.

Palantir stock has actually slid about 17% because the firm reported its fourth-quarter results on Feb. 17. It managed to expand earnings 34% year over year to get to $433 million, however capitalists were generally dissatisfied to see income from federal government consumers grow only 26% year over year in the period.

Instead of viewing the new collaboration with Jacobs as a possibility to increase development in the infrastructure-services room, it seems the marketplace could be dissatisfied that Palantir isn’t readying services by itself or dealing with one more possible companion.

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