Shares of Palantir Technologies (PLTR 5.81%) are dropping today regardless of gains for the more comprehensive market. The firm’s stock was down roughly 4.8% as of 12:40 p.m. ET Wednesday together with the news of a new collaboration with Jacobs Engineering Group (J 0.14% ). Meanwhile, Jacobs’ share price was up about 2.8%.
Palantir stock price target has actually been volatile in current months and has seen particularly unstable trading following its fourth-quarter record in mid-February, so it’s difficult to claim just how much of today’s movement is connected to the news of the Jacobs partnership or other catalysts at play.
It’s possible that some investors see partnering with Jacobs– rather than developing internally developed, totally owned solutions– as a negative indication about the company’s development prospects.
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Picture resource: Getty Images.
So what
Jacobs released a press release today announcing that it had actually created a collaboration with Palantir to develop data and technology options for the facilities and national protection markets. The first software program created by the partners will be a data-analytics offering for public- and also private-sector customers in water-infrastructure services. It will concentrate on using data evaluation to boost the operation and also upkeep of water and also wastewater treatment plants.
That barely sounds like trouble in its very own right, however capitalists might be attracting unfavorable reasonings about what the partnership recommends about Palantir’s abilities and growth expectation.
Palantir stock has slid approximately 17% since the company reported its fourth-quarter results on Feb. 17. It handled to grow earnings 34% year over year to get to $433 million, yet capitalists were generally disappointed to see profits from federal government consumers grow just 26% year over year in the duration.
Rather than checking out the brand-new partnership with Jacobs as a possibility to increase development in the infrastructure-services room, it seems the market could be disappointed that Palantir isn’t readying solutions by itself or working with an additional possible partner.
Palantir currently has a market capitalization of approximately $24 billion as well as is valued about 12 times this year’s expected sales and 59 times anticipated adjusted profits.
