Shares of Palantir Technologies (PLTR 5.81%) are falling today in spite of gains for the wider market. The business’s stock was down approximately 4.8% since 12:40 p.m. ET Wednesday along with the news of a brand-new collaboration with Jacobs Engineering Group (J 0.14% ). On the other hand, Jacobs’ share price was up approximately 2.8%.
Palantir stock price prediction has been volatile in recent months and has seen especially rough trading following its fourth-quarter report in mid-February, so it’s difficult to claim just how much these days’s activity is linked to the news of the Jacobs collaboration or other drivers at play.
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Jacobs published a press release today announcing that it had formed a collaboration with Palantir to produce information and also innovation solutions for the framework and nationwide safety markets. The initial software produced by the companions will certainly be a data-analytics offering for public- as well as private-sector consumers in water-infrastructure services. It will focus on using information analysis to improve the operation and maintenance of water and wastewater therapy plants.
That barely sounds like problem in its very own right, however financiers might be attracting negative reasonings about what the partnership suggests regarding Palantir’s abilities and development overview.
Palantir stock has slipped roughly 17% because the business reported its fourth-quarter results on Feb. 17. It handled to grow earnings 34% year over year to reach $433 million, but financiers were broadly dissatisfied to see profits from federal government customers expand just 26% year over year in the period.
Instead of viewing the new collaboration with Jacobs as a chance to increase growth in the infrastructure-services space, it seems the marketplace could be let down that Palantir isn’t prepping services by itself or working with one more possible partner.
Palantir now has a market capitalization of roughly $24 billion and is valued around 12 times this year’s expected sales and 59 times anticipated adjusted revenues.