Shares of Palantir Technologies (PLTR 5.81%) are dropping today regardless of gains for the broader market. The business’s stock was down approximately 4.8% as of 12:40 p.m. ET Wednesday together with the statement of a new partnership with Jacobs Design Team (J 0.14% ). Meanwhile, Jacobs’ share rate was up about 2.8%.
Palantir stock price has actually been unpredictable in current months and also has actually seen particularly rough trading following its fourth-quarter report in mid-February, so it’s tough to state just how much of today’s motion is connected to the information of the Jacobs collaboration or various other drivers at play.
A chart line and arrowhead relocating down.
Image resource: Getty Images.
Jacobs published a press release today announcing that it had actually created a collaboration with Palantir to create information and also technology services for the infrastructure as well as nationwide safety markets. The initial software generated by the companions will certainly be a data-analytics offering for public- and also private-sector customers in water-infrastructure solutions. It will concentrate on making use of information analysis to enhance the operation as well as maintenance of water and also wastewater therapy plants.
That barely seems like bad news in its very own right, yet investors may be attracting negative inferences regarding what the cooperation recommends concerning Palantir’s capacities as well as development outlook.
Palantir stock has slid about 17% given that the firm reported its fourth-quarter results on Feb. 17. It managed to grow revenue 34% year over year to get to $433 million, yet capitalists were extensively disappointed to see earnings from federal government customers grow just 26% year over year in the duration.
Rather than seeing the new partnership with Jacobs as an opportunity to speed up growth in the infrastructure-services space, it appears the marketplace could be dissatisfied that Palantir isn’t prepping solutions by itself or working with an additional potential partner.
Palantir now has a market capitalization of approximately $24 billion and is valued around 12 times this year’s expected sales and 59 times expected modified profits.