Shares of Palantir Technologies (PLTR 5.81%) are dropping today despite gains for the broader market. The firm’s stock was down roughly 4.8% since 12:40 p.m. ET Wednesday along with the statement of a brand-new collaboration with Jacobs Design Team (J 0.14% ). At the same time, Jacobs’ share rate was up approximately 2.8%.
Palantir stock price today has been unstable in recent months as well as has seen specifically rough trading following its fourth-quarter report in mid-February, so it’s hard to claim how much of today’s activity is linked to the news of the Jacobs partnership or various other catalysts at play.
It’s feasible that some capitalists see partnering with Jacobs– as opposed to creating inside established, completely possessed services– as a negative indicator concerning the business’s growth leads.
A chart line as well as arrow relocating down.
Image resource: Getty Images.
Jacobs released a press release today announcing that it had developed a collaboration with Palantir to produce data as well as technology options for the infrastructure and also national security markets. The first software application produced by the companions will be a data-analytics offering for public- and private-sector customers in water-infrastructure solutions. It will certainly focus on using information evaluation to boost the procedure as well as maintenance of water and also wastewater treatment plants.
That hardly seems like bad news in its very own right, yet investors might be attracting adverse inferences regarding what the collaboration suggests about Palantir’s capabilities and growth overview.
Palantir stock has slipped approximately 17% considering that the business reported its fourth-quarter results on Feb. 17. It managed to grow profits 34% year over year to reach $433 million, but financiers were broadly let down to see profits from federal government customers expand just 26% year over year in the period.
As opposed to viewing the brand-new partnership with Jacobs as a possibility to increase development in the infrastructure-services area, it seems the marketplace could be disappointed that Palantir isn’t readying services on its own or working with an additional prospective companion.
Palantir now has a market capitalization of approximately $24 billion and also is valued about 12 times this year’s expected sales as well as 59 times anticipated modified revenues.