Generac shares rise sharply following deal with Amazon
Generac (GNRC) saw its stock surge nearly 34% in premarket trading after announcing a $8 billion supply agreement to provide generators for Amazon’s data centers. The company also issued a warrant granting Amazon the right to purchase up to an 11% stake, valued at approximately $205 million based on current prices. Analysts viewed the deal as positive due to its scale and potential earnings upside, signaling confidence in Generac's ability to meet demand from one of the world’s largest tech companies. The partnership is expected to significantly boost revenue for Generac over time by securing long-term contracts with Amazon. The stock rally reflects investor optimism about increased visibility into future sales and improved financial performance stemming from this strategic agreement.
