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

Shares of Palantir Technologies (PLTR 5.81%) are falling today in spite of gains for the more comprehensive market. The business’s stock was down about 4.8% since 12:40 p.m. ET Wednesday combined with the news of a new collaboration with Jacobs Engineering Group (J 0.14% ). On the other hand, Jacobs’ share cost was up about 2.8%.

Palantir stock quote┬áhas actually been unstable in current months and also has seen particularly turbulent trading following its fourth-quarter report in mid-February, so it’s tough to claim how much of today’s activity is attached to the news of the Jacobs collaboration or various other stimulants at play.

It’s possible that some investors see partnering with Jacobs– instead of producing internally created, totally possessed services– as an unfavorable indicator about the company’s development potential customers.

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

So what
Jacobs released a press release today introducing that it had developed a collaboration with Palantir to develop data as well as innovation solutions for the framework and also nationwide safety markets. The first software program generated by the companions will certainly be a data-analytics offering for public- as well as private-sector customers in water-infrastructure solutions. It will focus on making use of information analysis to boost the operation and also maintenance of water and wastewater treatment plants.

That barely seems like bad news in its own right, however capitalists could be attracting unfavorable reasonings concerning what the collaboration suggests regarding Palantir’s capabilities and development expectation.

Palantir stock has slipped approximately 17% considering that the company reported its fourth-quarter results on Feb. 17. It handled to grow income 34% year over year to reach $433 million, but capitalists were generally let down to see revenue from federal government customers expand just 26% year over year in the period.

As opposed to watching the new partnership with Jacobs as an opportunity to increase development in the infrastructure-services space, it appears the marketplace could be dissatisfied that Palantir isn’t preparing options by itself or collaborating with an additional possible partner.

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