Shares of Palantir Technologies (PLTR 5.81%) are falling today regardless of gains for the wider market. The firm’s stock was down about 4.8% as of 12:40 p.m. ET Wednesday together with the statement of a new partnership with Jacobs Engineering Group (J 0.14% ). Meanwhile, Jacobs’ share rate was up roughly 2.8%.
Palantir stock price today has actually been volatile in recent months and has actually seen particularly rough trading following its fourth-quarter record in mid-February, so it’s tough to claim just how much these days’s movement is linked to the news of the Jacobs collaboration or various other drivers at play.
A graph line as well as arrow relocating down.
Picture resource: Getty Images.
Jacobs released a press release today introducing that it had actually developed a collaboration with Palantir to produce information as well as technology remedies for the infrastructure and national protection markets. The very first software program generated by the partners will be a data-analytics offering for public- and also private-sector customers in water-infrastructure solutions. It will focus on making use of data analysis to boost the procedure and also maintenance of water and wastewater therapy plants.
That rarely sounds like bad news in its very own right, yet financiers may be drawing adverse inferences concerning what the partnership recommends about Palantir’s capacities and also growth outlook.
Palantir stock has slid approximately 17% because the company reported its fourth-quarter results on Feb. 17. It managed to expand earnings 34% year over year to get to $433 million, yet financiers were broadly let down to see revenue from government customers expand only 26% year over year in the period.
Rather than checking out the new partnership with Jacobs as an opportunity to increase growth in the infrastructure-services area, it seems the marketplace could be let down that Palantir isn’t preparing solutions by itself or working with one more possible companion.
Palantir currently has a market capitalization of about $24 billion and also is valued around 12 times this year’s anticipated sales and also 59 times expected adjusted profits.