Generac Stock Skyrockets on Amazon Generator Deal
Generac's stock surged 40% in after-hours trading on Wednesday after it was announced that Amazon had signed a long-term deal to purchase $2.4 billion worth of backup generators for its data centers.
The agreement, disclosed in a September 16 securities filing, will see Generac supply generators to Amazon's data centers over the next two years, with initial deliveries valued at $2.4 billion expected in 2027 and 2028.
As part of the deal, Amazon received a warrant for up to 1.69 million Generac shares, which will vest as its generator payments climb towards $8 billion.
Cantor Fitzgerald and Barclays left their ratings on the stock unchanged following the announcement, with Cantor calling the pact 'the most important data center news in the company's history.'