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

Shares of Palantir Technologies (PLTR 5.81%) are falling today in spite of gains for the wider market. The business’s stock was down roughly 4.8% as of 12:40 p.m. ET Wednesday in conjunction with the news of a new partnership with Jacobs Design Team (J 0.14% ). On the other hand, Jacobs’ share rate was up roughly 2.8%.

Palantir stock quote┬áhas been unpredictable in current months and has seen specifically stormy trading following its fourth-quarter report in mid-February, so it’s tough to state just how much of today’s movement is linked to the news of the Jacobs partnership or other drivers at play.

It’s possible that some investors see partnering with Jacobs– instead of creating internally created, completely owned remedies– as an adverse indication regarding the business’s growth leads.

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Picture resource: Getty Images.

So what
Jacobs published a press release today revealing that it had formed a partnership with Palantir to produce information and modern technology solutions for the infrastructure as well as nationwide security markets. The first software program created by the partners will be a data-analytics offering for public- as well as private-sector clients in water-infrastructure services. It will focus on utilizing information evaluation to improve the operation and also maintenance of water and wastewater therapy plants.

That rarely sounds like trouble in its very own right, yet capitalists might be drawing unfavorable reasonings concerning what the collaboration suggests regarding Palantir’s capacities as well as growth outlook.

Palantir stock has actually slid approximately 17% because the business reported its fourth-quarter results on Feb. 17. It handled to expand profits 34% year over year to get to $433 million, but investors were broadly let down to see revenue from government consumers grow only 26% year over year in the period.

As opposed to seeing the brand-new partnership with Jacobs as a possibility to increase expansion in the infrastructure-services room, it seems the market could be let down that Palantir isn’t readying options on its own or working with another possible companion.

Palantir now has a market capitalization of roughly $24 billion as well as is valued roughly 12 times this year’s anticipated sales and 59 times anticipated adjusted profits.