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Shares of Palantir Technologies (PLTR 5.81%) are dropping today in spite 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 firm’s stock was down roughly 4.8% as of 12:40 p.m. ET Wednesday along with the news of a brand-new partnership with Jacobs Engineering Group (J 0.14% ). At the same time, Jacobs’ share rate was up roughly 2.8%.

Palantir stock price target┬áhas been unpredictable in current months and has seen particularly unstable trading following its fourth-quarter record in mid-February, so it’s tough to say how much these days’s activity is attached to the news of the Jacobs collaboration or other drivers at play.

It’s possible that some capitalists see partnering with Jacobs– rather than developing internally developed, completely possessed services– as a negative indicator regarding the firm’s development leads.

A chart line and also arrow moving down.
Image resource: Getty Images.

So what
Jacobs published a press release today announcing that it had developed a collaboration with Palantir to create information and also innovation services for the facilities and nationwide security markets. The very first software program produced by the partners will be a data-analytics offering for public- as well as private-sector consumers in water-infrastructure solutions. It will focus on making use of data evaluation to enhance the procedure and maintenance of water and wastewater treatment plants.

That barely sounds like bad news in its very own right, but investors could be attracting adverse inferences about what the partnership recommends regarding Palantir’s capacities as well as growth expectation.

Palantir stock has actually slipped roughly 17% considering that the firm reported its fourth-quarter outcomes on Feb. 17. It managed to grow profits 34% year over year to reach $433 million, but financiers were broadly dissatisfied to see revenue from government clients grow just 26% year over year in the duration.

Instead of seeing the brand-new collaboration with Jacobs as an opportunity to accelerate expansion in the infrastructure-services area, it seems the market could be let down that Palantir isn’t readying solutions on its own or working with an additional potential companion.

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