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

Shares of Palantir Technologies (PLTR 5.81%) are falling today regardless of gains for the broader market. The business’s stock was down about 4.8% as of 12:40 p.m. ET Wednesday together with the news of a brand-new collaboration with Jacobs Engineering Group (J 0.14% ). Meanwhile, Jacobs’ share cost was up roughly 2.8%.

Palantir stock price┬áhas actually been unstable in current months as well as has actually seen especially stormy trading following its fourth-quarter report in mid-February, so it’s hard to say just how much these days’s motion is attached to the news of the Jacobs collaboration or other stimulants at play.

It’s feasible that some investors see partnering with Jacobs– as opposed to developing inside developed, totally owned remedies– as a negative indication about the company’s growth prospects.

A chart line and arrowhead relocating 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 options for the facilities and national safety markets. The very first software program generated by the companions will certainly be a data-analytics offering for public- and private-sector consumers in water-infrastructure solutions. It will focus on utilizing information evaluation to enhance the operation and upkeep of water and wastewater treatment plants.

That hardly seems like bad news in its own right, but investors could be attracting unfavorable inferences concerning what the partnership suggests concerning Palantir’s capabilities and development expectation.

Palantir stock has slid about 17% because the business reported its fourth-quarter outcomes on Feb. 17. It managed to expand revenue 34% year over year to get to $433 million, yet financiers were generally disappointed to see revenue from federal government consumers grow only 26% year over year in the duration.

Rather than checking out the brand-new collaboration with Jacobs as a possibility to increase growth in the infrastructure-services space, it seems the market could be let down that Palantir isn’t prepping solutions on its own or working with an additional prospective companion.

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