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

Shares of Palantir Technologies (PLTR 5.81%) are falling today despite gains for the more comprehensive market. The firm’s stock was down about 4.8% as of 12:40 p.m. ET Wednesday in conjunction with the statement of a brand-new collaboration with Jacobs Design Group (J 0.14% ). Meanwhile, Jacobs’ share price was up about 2.8%.

Palantir stock price prediction┬áhas actually been volatile in recent months as well as has actually seen especially stormy trading following its fourth-quarter record in mid-February, so it’s difficult to say how much these days’s activity is connected to the news of the Jacobs collaboration or various other drivers at play.

It’s possible that some financiers see partnering with Jacobs– as opposed to creating inside established, totally had options– as a negative indication concerning the firm’s growth prospects.

A graph line and arrowhead moving down.
Image resource: Getty Images.

So what
Jacobs released a news release today revealing that it had created a collaboration with Palantir to produce data as well as innovation remedies for the infrastructure as well as national protection markets. The first software application generated by the partners will certainly be a data-analytics offering for public- and private-sector customers in water-infrastructure services. It will focus on using information analysis to boost the operation and maintenance of water as well as wastewater treatment plants.

That barely sounds like bad news in its own right, however capitalists could be drawing negative reasonings concerning what the partnership suggests about Palantir’s capabilities and development expectation.

Palantir stock has actually slid roughly 17% because the company reported its fourth-quarter results on Feb. 17. It took care of to expand income 34% year over year to reach $433 million, yet financiers were extensively let down to see income from federal government clients grow only 26% year over year in the period.

Instead of viewing the brand-new partnership with Jacobs as a chance to accelerate growth in the infrastructure-services space, it appears the marketplace could be let down that Palantir isn’t readying solutions by itself or working with one more possible partner.

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