Generac Stock Surges on Amazon Deal Worth Up to $8 Billion
On September 16, Generac Holdings (GNRC) announced a long-term supply deal with Amazon valued at up to $8 billion in aggregate purchases. The agreement includes initial deliveries of $2.4 billion between 2027 and 2028 for backup power generators used in Amazon's data centers. As part of the deal, Generac issued a warrant allowing Amazon’s investment arm to purchase nearly 1.7 million shares at $201 each, with vesting tied to future purchases under the contract. The news triggered an immediate market reaction: after-hours trading saw GNRC stock surge as much as 40%, and by Thursday morning it had risen about 20% from its previous close of $175. This marked a reversal for Generac, which had fallen nearly 40% since June due to investor skepticism around the data center market. Analysts remain largely bullish on Generac stock despite recent volatility. As of September 16, there were 12 'buy' ratings and one 'underperform', with an average price target of $284—36% above Thursday’s closing price. TIKR's mid-case model suggests the stock could reach $338 by December 2030.
