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

Shares of Palantir Technologies (PLTR 5.81%) are dropping today despite gains for the more comprehensive market. The business’s stock was down roughly 4.8% since 12:40 p.m. ET Wednesday in conjunction with the statement of a new collaboration with Jacobs Engineering Group (J 0.14% ). Meanwhile, Jacobs’ share cost was up roughly 2.8%.

Palantir stock price today┬áhas been unstable in current months and also has actually seen particularly turbulent trading following its fourth-quarter report in mid-February, so it’s challenging to state just how much these days’s motion is connected to the information of the Jacobs collaboration or other drivers at play.

It’s possible that some capitalists see partnering with Jacobs– instead of creating inside developed, totally possessed solutions– as an adverse indicator concerning the firm’s development prospects.

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

So what
Jacobs published a news release today revealing that it had created a partnership with Palantir to produce information as well as technology solutions for the framework as well as nationwide safety markets. The first software created by the partners will be a data-analytics offering for public- as well as private-sector customers in water-infrastructure services. It will certainly concentrate on making use of data analysis to enhance the procedure and also maintenance of water and wastewater therapy plants.

That hardly sounds like bad news in its very own right, yet investors may be attracting unfavorable reasonings concerning what the collaboration suggests about Palantir’s capabilities as well as growth expectation.

Palantir stock has slid about 17% since the firm reported its fourth-quarter outcomes on Feb. 17. It handled to grow profits 34% year over year to reach $433 million, but financiers were broadly disappointed to see profits from federal government clients grow only 26% year over year in the duration.

Rather than watching the brand-new collaboration with Jacobs as a chance to increase development in the infrastructure-services area, it appears the market could be disappointed that Palantir isn’t prepping services on its own or working with an additional possible companion.

Palantir currently has a market capitalization of roughly $24 billion and also is valued about 12 times this year’s expected sales and also 59 times expected modified earnings.