Generac Stock Soars 18% on Amazon's Landmark Power Deal
Generac Holdings Inc., the company behind data-center backup generators, has seen its stock surge by as much as 18-19% to around $207-208 a share after announcing a landmark supply agreement with Amazon. The deal is worth up to $8 billion over its life, with initial deliveries of roughly $2.4 billion expected across 2027 and 2028.
The agreement also includes a warrant for Amazon to buy up to 1.69 million Generac shares at $200.93, exercisable through September 2033, with just over 300,000 shares vesting immediately. This has added roughly $1.9 billion to the company's market cap, which stood near $12.25 billion Thursday.
Generac is a core holding in Quality Compounders, an Investing.com strategy that screens for financially durable, high-return businesses with consistent earnings power rather than chasing momentum alone. The stock has been up 14.2% this month through Thursday's close, with the bulk of that gain landing in a single session.
Analysts have weighed in on the deal, with Canaccord Genuity hiking its price target to $375 from $275 and calling the agreement 'landmark.' Cantor Fitzgerald reiterated an Overweight rating at $333, describing it as Generac's 'most important data-center disclosure since its first hyperscaler win.'
The stock now trades within a 52-week range of $134.80 to $296.44.