Shares of Fabrinet (FN 10.79%) were up on Thursday. The company's stock gained 10.8% as of the market close and was up as much as 13.4% earlier in the day. The leg up came amid broader market weakness, with the S&P 500 (^GSPC -1.39%) down 1.4% and the Nasdaq Composite (^IXIC -1.96%) down 2.1%.
The company, which manufactures precision optical equipment critical to modern data centers, announced a strategic partnership with Amazon in which the tech giant will purchase Fabrinet stock.
The company has entered an agreement that allows Amazon to purchase 381,922 ordinary shares of Fabrinet at a price of $208.48 per share. The warrant will expire on March 12, 2032. Nearly 40,000 shares have already vested, while the remainder will vest based on future payments by Amazon or its affiliates to Fabrinet.
Amazon, through its wholly owned subsidiary Amazon Web Services, is one of the largest data center operators in the world. Its servers power a large portion of the modern internet and help enable AI models, like ChatGPT.
Partnering with Amazon could propel sales growth for Fabrinet as Amazon scales its own artificial intelligence (AI) operations. Structuring the deal as it has with most of the shares vesting on future payments indicates this will be a long and fruitful relationship.
Fabrinet is in a solid financial position with minimal debt and can hopefully take greater advantage of continued AI capital expenditures from big tech companies like Amazon. With a price to earnings ratio (P/E) of 22.6, it's reasonably priced.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。