Generac Stock Surges After Announcing Data Center Supply Agreement with Amazon
Generac Holdings Inc. (NYSE:GNRC) saw its stock surge by approximately 33% in premarket trading on Thursday following the announcement of a significant supply agreement with Amazon.com, Inc. (NASDAQ:AMZN). The deal involves Generac supplying backup power generators to Amazon data centers and includes a warrant for Amazon to purchase up to 1.69 million shares at $200.93 per share, potentially worth up to $8 billion. Under the agreement, some of these warrants vest immediately while others are contingent on future payments from Amazon to Generac. The initial deliveries under this long-term supply deal are expected to generate $2.4 billion in revenue for 2027 and 2028. Additionally, analysts have recently raised their price targets for GNRC stock, contributing to investor optimism. The stock is also weighted significantly within certain ETFs like the Corgi Battery Energy Storage Systems ETF (NASDAQ:WATS) and Matrix Advisors Value ETF (NYSE:MAVF), meaning any large inflows or outflows in these funds could impact Generac's share price.
