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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 broader market. The company’s stock was down approximately 4.8% as of 12:40 p.m. ET Wednesday together with the news of a brand-new partnership with Jacobs Design Team (J 0.14% ). At the same time, Jacobs’ share rate was up about 2.8%.

Palantir stock quote has actually been volatile in recent months and has seen particularly stormy trading following its fourth-quarter report in mid-February, so it’s difficult to state just how much these days’s motion is connected to the information of the Jacobs collaboration or various other drivers at play.

It’s feasible that some investors see partnering with Jacobs– as opposed to producing inside developed, fully owned options– as an unfavorable sign concerning the business’s development prospects.

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

So what
Jacobs published a news release today revealing that it had actually developed a collaboration with Palantir to develop data as well as innovation services for the infrastructure as well as nationwide safety and security markets. The first software application created by the companions will be a data-analytics offering for public- and private-sector consumers in water-infrastructure solutions. It will certainly focus on utilizing data evaluation to enhance the procedure and also upkeep of water and also wastewater treatment plants.

That hardly seems like bad news in its own right, yet investors might be drawing adverse inferences concerning what the cooperation suggests about Palantir’s abilities and growth overview.

Palantir stock has actually slid approximately 17% given that the business reported its fourth-quarter outcomes on Feb. 17. It took care of to grow earnings 34% year over year to reach $433 million, yet investors were generally disappointed to see revenue from government clients expand only 26% year over year in the period.

Rather than seeing the new partnership with Jacobs as a chance to increase development in the infrastructure-services space, it appears the market could be disappointed that Palantir isn’t readying services on its own or working with an additional possible partner.

Palantir now has a market capitalization of about $24 billion and also is valued approximately 12 times this year’s anticipated sales and also 59 times expected adjusted revenues.