Amazon Deal Sparks Generac Stock Surge on $2.4 Billion Partnership

Generac stock surged on Thursday after the generator maker entered into a lucrative partnership with Amazon. The deal has the potential to be a game changer for Generac, which will provide backup power to Amazon's data centers.

The long-term supply agreement is projected to total $2.4 billion in 2027 and 2028, which is nearly half of Generac's revenue in 2025. Additionally, Amazon received a warrant to purchase up to 1,693,745 shares of Generac's stock at an exercise price of $200.9266 per share, totaling over $340 million.

The partnership provides a valuable seal of approval for Generac's equipment, which can supply uninterrupted power during blackouts or other temporary outages. This could lead to additional supply deals with other cloud computing giants and more gains for Generac's shareholders.