This Energy Solutions Stock Surged 40% After-Hours — What’s The AMZN Connection?

• Generac issued an Amazon subsidiary a warrant to acquire up to 1.69 million GNRC shares at $200.9266 per share.
• The company signed the long-term supply agreement alongside the warrant issuance on Wednesday.
• Initial backup generator deliveries are expected to total $2.4 billion across 2027 and 2028.

Shares of energy solutions company Generac Holdings (GNRC) surged 40% in after-hours trading on Wednesday after the company signed a long-term agreement to supply backup power generators for Amazon.com’s (AMZN) data centers in a deal that could be worth more than $8 billion.

Generac, Amazon Sign Long-Term Supply Deal

Generac and Amazon entered the agreement on September 16, according to a regulatory filing. Under the deal, Generac issued a warrant to a wholly-owned Amazon subsidiary to acquire up to 1.69 million GNRC shares at an exercise price of $200.9266 per share.

A total of 307,954 warrant shares vested immediately. The remaining shares will vest in multiple tranches based on aggregate gross payments received by Generac and its global affiliates from Amazon and its affiliates for backup power generators for Amazon data centers, up to a total of $8 billion.

The companies also signed a long-term supply agreement on the date the warrant was issued.

$2.4B In Initial Deliveries

Initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028.

Subject to vesting and other conditions, the warrant can be exercised in whole or in part through either a cash or cashless exercise at Generac’s election on or before September 16, 2033. The exercise price and number of warrant shares are subject to anti-dilution adjustments, while Generac has also granted registration rights for the warrant shares.

Generac Holdings provides power generation equipment, energy storage systems, energy management devices and solutions, and other power products and services for residential, commercial, data center, telecom, rental and industrial markets.

GNRC, AMZN Stocks: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for GNRC improved to ‘neutral’ from ‘bearish’ over the past 24 hours, while message volume rose to ‘normal’ from ‘low.’

For AMZN, retail sentiment remained ‘bearish,’ unchanged over the same period, while message volume was ‘normal.’

GNRC stock is up nearly 26% year-to-date, while AMZN shares have gained 6% during the same period.

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