Amazon Spikes Generac Stock with $340M Warrant Deal

Amazon has secured warrants to purchase up to $340 million worth of Generac stock, sending the backup power provider's share price soaring over 40% in extended trading. The agreement grants Amazon the right to acquire up to 1.69 million shares at $200.93 a piece, with a total potential investment value of up to $8 billion.

Generac will supply Amazon with backup power generators for its data centers, with initial deliveries expected to total $2.4 billion in 2027 and 2028. The warrants are equivalent to almost 3% of outstanding shares in Generac, which has a market cap of about $10.3 billion.

This deal marks the latest infrastructure partnership for Amazon, following recent agreements with Qualcomm and OpenAI. Amazon Web Services has been rapidly expanding its data center capacity to meet growing demand for cloud computing resources tied to artificial intelligence advancements.