Generac stock rallies 34% as an $8 billion supply deal with Amazon bolsters its data center infrastructure pipeline and provides long-term revenue visibility.
Generac announced a long-term agreement to supply Amazon with backup generators, with initial deliveries worth $2.4B in 2027-2028 and a potential total purchase target of $8B, driving shares up 33.7%.
The S&P 500 rose 0.7% following the Federal Reserve's rate hike and broader US equity market gains.
The Dow Jones advanced 0.7% alongside broader US stock market gains.
The Nasdaq gained 0.8%, slightly outperforming the S&P 500 and Dow in the same session.
Amazon is the buyer in a long-term generator supply agreement, but the financial impact on Amazon is not detailed and appears immaterial relative to its scale.
Generac Holdings shares jumped 33.7% following a landmark agreement to supply Amazon with industrial backup generators. The contract includes $2.4 billion in initial deliveries through 2028, with a total potential value reaching $8 billion, significantly expanding the company's data center footprint.
The agreement includes initial deliveries of $2.4 billion between 2027 and 2028, with a total potential purchase target of $8 billion over the contract's lifetime.
Despite the Federal Reserve's 25 basis point rate hike, the S&P 500 and Dow Jones rose 0.7%, while the Nasdaq gained 0.8%.