Shares of Palantir Technologies (PLTR 5.81%) are falling today despite gains for the wider market. The firm’s stock was down about 4.8% since 12:40 p.m. ET Wednesday combined with the announcement of a new collaboration with Jacobs Design Group (J 0.14% ). At the same time, Jacobs’ share rate was up approximately 2.8%.
Palantir stock price today has been unpredictable in current months as well as has seen especially unstable trading following its fourth-quarter report in mid-February, so it’s difficult to state just how much of today’s motion is linked to the news of the Jacobs collaboration or other catalysts at play.
A chart line as well as arrowhead moving down.
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Jacobs released a press release today announcing that it had actually created a partnership with Palantir to produce information as well as technology remedies for the infrastructure and also nationwide security markets. The first software program generated by the companions will be a data-analytics offering for public- as well as private-sector clients in water-infrastructure services. It will certainly concentrate on making use of data evaluation to boost the operation as well as maintenance of water and also wastewater treatment plants.
That hardly seems like problem in its own right, but investors could be attracting negative reasonings regarding what the collaboration suggests regarding Palantir’s capacities as well as growth expectation.
Palantir stock has actually slid about 17% since the company reported its fourth-quarter outcomes on Feb. 17. It handled to grow profits 34% year over year to get to $433 million, yet capitalists were generally disappointed to see revenue from federal government customers expand just 26% year over year in the period.
Instead of checking out the new partnership with Jacobs as an opportunity to speed up expansion in the infrastructure-services area, it appears the market could be dissatisfied that Palantir isn’t readying services on its own or dealing with an additional prospective companion.
Palantir now has a market capitalization of approximately $24 billion and also is valued around 12 times this year’s expected sales and 59 times expected modified revenues.