Shares of Palantir Technologies (PLTR 5.81%) are falling today in spite of gains for the wider market. The business’s stock was down about 4.8% since 12:40 p.m. ET Wednesday combined with the statement of a new partnership with Jacobs Engineering Team (J 0.14% ). At the same time, Jacobs’ share cost was up roughly 2.8%.

Palantir stock price today has actually been unstable in recent months and also has actually seen especially unstable trading following its fourth-quarter report in mid-February, so it’s hard to claim how much these days’s activity is attached to the information of the Jacobs partnership or other stimulants at play.

It’s feasible that some investors see partnering with Jacobs– instead of producing inside created, totally owned services– as an adverse sign regarding the firm’s development prospects.

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

So what
Jacobs published a press release today introducing that it had formed a partnership with Palantir to create data as well as modern technology options for the framework and also national safety and security markets. The initial software generated by the partners will be a data-analytics offering for public- and private-sector consumers in water-infrastructure solutions. It will certainly focus on utilizing information analysis to improve the procedure and upkeep of water and wastewater treatment plants.

That barely sounds like trouble in its own right, but investors may be drawing unfavorable reasonings about what the cooperation recommends concerning Palantir’s capabilities and development expectation.

Palantir stock has slipped roughly 17% given that the company reported its fourth-quarter results on Feb. 17. It took care of to expand earnings 34% year over year to get to $433 million, yet investors were extensively disappointed to see earnings from government clients grow just 26% year over year in the period.

Instead of watching the new collaboration with Jacobs as an opportunity to increase development in the infrastructure-services room, it appears the marketplace could be let down that Palantir isn’t readying solutions by itself or working with one more potential partner.

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