Generac Stock Skyrockets on $8 Billion Amazon Deal

Generac Holdings stock surged over 40% in after-hours trading on Wednesday following an announcement of a long-term agreement to supply backup generators to Amazon's data centres.

The deal, worth up to $8 billion, will see Generac deliver initial shipments valued at around $2.4 billion in 2027 and 2028. This is a significant expansion of the company's relationship with Amazon, which has been expanding its data centre infrastructure to support cloud computing and AI workloads.

The agreement also includes a warrant for an Amazon subsidiary to purchase up to 1.69 million GNRC shares at $200.9266 each, with approximately 307,954 shares vesting immediately and the remaining tied to future generator deliveries.