Amazon Undervalued by 47%, Generac Deal Worth $2.4 Billion
Amazon.com (AMZN) has recently signed a long-term agreement with Generac Holdings to supply backup generators for its global data centers. The deal, worth around $2.4 billion, is expected to start delivering in 2027 and 2028. This news comes as Amazon's shares have been volatile lately, down 3.18% over the past month but up 10.90% year-to-date.
The company's stock price has been affected by recent headlines about AI data center spending, new fixed income offerings, and wage commitments, leading investors to reassess its growth potential and perceived risk.
According to Simply Wall St, Amazon's shares are undervalued by 47%, with a fair value of around $475.09 per share. This is based on the company's high-growth margins in its AWS, Advertising, and subscription services segments, as well as its expected revenue growth and profit expansion.