Shares of Palantir Technologies (PLTR 5.81%) are falling today in spite of gains for the broader market. The firm’s stock was down about 4.8% as of 12:40 p.m. ET Wednesday together with the announcement of a new collaboration with Jacobs Engineering Team (J 0.14% ). Meanwhile, Jacobs’ share rate was up roughly 2.8%.
Palantir stock quote has actually been unstable in recent months and also has actually seen particularly turbulent trading following its fourth-quarter report in mid-February, so it’s difficult to claim how much of today’s activity is linked to the information of the Jacobs collaboration or various other catalysts at play.
It’s possible that some investors see partnering with Jacobs– as opposed to creating inside developed, totally owned remedies– as an unfavorable indicator regarding the business’s growth potential customers.
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Photo source: Getty Images.
So what
Jacobs released a press release today announcing that it had actually developed a partnership with Palantir to produce data and innovation services for the framework as well as nationwide safety markets. The very first software generated by the partners will be a data-analytics offering for public- and also private-sector clients in water-infrastructure solutions. It will certainly focus on utilizing data evaluation to boost the operation and upkeep of water as well as wastewater therapy plants.
That hardly seems like trouble in its own right, but capitalists may be drawing negative inferences regarding what the collaboration suggests concerning Palantir’s capabilities and also development outlook.
Palantir stock has actually slipped approximately 17% considering that the firm reported its fourth-quarter results on Feb. 17. It managed to grow revenue 34% year over year to reach $433 million, however financiers were broadly dissatisfied to see revenue from federal government clients expand only 26% year over year in the period.
Instead of viewing the new collaboration with Jacobs as a possibility to increase expansion in the infrastructure-services room, it seems the market could be disappointed that Palantir isn’t preparing options by itself or working with another potential partner.
Palantir now has a market capitalization of approximately $24 billion and also is valued about 12 times this year’s expected sales and 59 times expected adjusted earnings.