Shares of Palantir Technologies (PLTR 5.81%) are dropping today in spite of gains for the more comprehensive market. The company’s stock was down approximately 4.8% since 12:40 p.m. ET Wednesday in conjunction with the statement of a new collaboration with Jacobs Design Team (J 0.14% ). Meanwhile, Jacobs’ share price was up approximately 2.8%.
Palantir stock price target has been volatile in current months and has seen specifically stormy trading following its fourth-quarter report in mid-February, so it’s difficult to state how much of today’s activity is linked to the information of the Jacobs collaboration or other drivers at play.
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Jacobs published a press release today revealing that it had developed a collaboration with Palantir to develop data and modern technology services for the infrastructure and national security markets. The first software created by the partners will certainly be a data-analytics offering for public- and also private-sector customers in water-infrastructure solutions. It will focus on using information analysis to enhance the operation and upkeep of water and wastewater therapy plants.
That hardly sounds like problem in its very own right, however investors could be drawing negative reasonings concerning what the partnership suggests about Palantir’s abilities as well as growth overview.
Palantir stock has slid about 17% considering that the company reported its fourth-quarter outcomes on Feb. 17. It took care of to grow income 34% year over year to reach $433 million, but investors were generally disappointed to see revenue from government consumers expand only 26% year over year in the period.
Instead of viewing the new partnership with Jacobs as a possibility to accelerate growth in the infrastructure-services space, it appears the market could be let down that Palantir isn’t prepping solutions on its own or dealing with one more prospective companion.
Palantir now has a market capitalization of approximately $24 billion and is valued approximately 12 times this year’s expected sales and also 59 times expected modified profits.