Amazon Locks In $8 Billion Deal with Generac

Generac Holdings has solidified its partnership with Amazon, which includes an order valued at up to $8 billion. The initial commitment from Amazon totals $2.4 billion, according to Jefferies analyst Tanner James.

The deal improves the quality and duration of Generac's backlog for its data center business, addressing investor concerns over terminal value.

Jefferies believes the financing structure, which includes warrants to Amazon, aligns interests and likely protects margins.