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% since 12:40 p.m. ET Wednesday combined with the statement of a new partnership with Jacobs Engineering Group (J 0.14% ). At the same time, Jacobs’ share cost was up about 2.8%.

Palantir stock forecast┬áhas been unpredictable in current months as well as has seen especially stormy trading following its fourth-quarter report in mid-February, so it’s challenging to claim how much of today’s movement is connected to the information of the Jacobs collaboration or other stimulants at play.

It’s feasible that some investors see partnering with Jacobs– rather than creating inside created, fully possessed solutions– as a negative indicator about the company’s development leads.

A chart line and also arrowhead moving down.
Picture resource: Getty Images.

So what
Jacobs released a press release today announcing that it had actually formed a partnership with Palantir to develop information and also technology services for the facilities as well as national safety markets. The first software produced by the companions will certainly be a data-analytics offering for public- as well as private-sector consumers in water-infrastructure services. It will certainly concentrate on utilizing data analysis to boost the procedure as well as maintenance of water and wastewater therapy plants.

That hardly seems like bad news in its own right, but capitalists may be drawing unfavorable inferences regarding what the partnership recommends concerning Palantir’s abilities and also growth outlook.

Palantir stock has actually slipped about 17% since the firm reported its fourth-quarter outcomes on Feb. 17. It handled to grow revenue 34% year over year to get to $433 million, but investors were broadly dissatisfied to see income from federal government clients expand just 26% year over year in the period.

Rather than checking out the brand-new partnership with Jacobs as a chance to accelerate expansion in the infrastructure-services room, it appears the market could be let down that Palantir isn’t readying remedies on its own or working with one more potential partner.

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