Fabrinet Gives Amazon Warrant to Buy Share Block, Boosting Stock

Dow Jones

13 Mar

By Dean Seal

Fabrinet's stock jumped after the company gave an Amazon.com affiliate a warrant to buy up to 381,922 shares at a higher price than yesterday's close.

The stock was up 9% at $219.97 in premarket trading. Shares were down 8% year-to-date when the market closed on Wednesday and closed roughly in line with where they were trading a year ago.

The maker of outsourced optical components said before the bell that it has entered into a transaction agreement with the Amazon affiliate to acquire the block of shares at an exercise price of about $208.48 apiece. Fabrinet's stock closed Wednesday at $201.88.

The warrant expires 10 years from now and allows for vesting in multiple tranches over the term of the warrant based on payments to Fabrinet from either Amazon or its affiliates under a commercial agreement. If Fabrinet gets acquired or its commercial agreement with Amazon gets terminated by Amazon for cause, the unvested portion of the warrant will vest in full.

Fabrinet said the issuance of the warrant is expected to result in a noncash, stock-based accounting adjustment to revenue of about $4.2 million and will hurt earnings by 12 cents a share. The company cut its earnings outlook for the third quarter accordingly, saying it now expects $2.20 to $2.28 a share and adjusted earnings of $2.43 to $2.51 a share.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

March 13, 2025 08:58 ET (12:58 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

1
2
3
4
5
6
7
8
9
10

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2519831374"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2519831374\",edition:\"fundamental\",,,undefined,":{"share":"https://ttm.financial/m/news/2519831374?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-03-13 20:58","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2519831374","market":"fut","top_or_hot":-1,"title":"Fabrinet Gives Amazon Warrant to Buy Share Block, Boosting Stock","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<pre>\n \n</pre>\n<p>\n  By Dean Seal \n</p>\n<pre>\n \n</pre>\n<p>\n  <a href=\"https://laohu8.com/S/FN\">Fabrinet</a>'s stock jumped after the company gave an Amazon.com affiliate a warrant to buy up to 381,922 shares at a higher price than yesterday's close. \n</p>\n<p>\n  The stock was up 9% at $219.97 in premarket trading. Shares were down 8% year-to-date when the market closed on Wednesday and closed roughly in line with where they were trading a year ago. \n</p>\n<p>\n  The maker of outsourced optical components said before the bell that it has entered into a transaction agreement with the Amazon affiliate to acquire the block of shares at an exercise price of about $208.48 apiece. Fabrinet's stock closed Wednesday at $201.88. \n</p>\n<p>\n  The warrant expires 10 years from now and allows for vesting in multiple tranches over the term of the warrant based on payments to Fabrinet from either Amazon or its affiliates under a commercial agreement. If Fabrinet gets acquired or its commercial agreement with Amazon gets terminated by Amazon for cause, the unvested portion of the warrant will vest in full. \n</p>\n<p>\n  Fabrinet said the issuance of the warrant is expected to result in a noncash, stock-based accounting adjustment to revenue of about $4.2 million and will hurt earnings by 12 cents a share. The company cut its earnings outlook for the third quarter accordingly, saying it now expects $2.20 to $2.28 a share and adjusted earnings of $2.43 to $2.51 a share. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to Dean Seal at dean.seal@wsj.com \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 13, 2025 08:58 ET (12:58 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Fabrinet Gives Amazon Warrant to Buy Share Block, Boosting Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFabrinet Gives Amazon Warrant to Buy Share Block, Boosting Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-03-13 20:58</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<pre>\n \n</pre>\n<p>\n  By Dean Seal \n</p>\n<pre>\n \n</pre>\n<p>\n  <a href=\"https://laohu8.com/S/FN\">Fabrinet</a>'s stock jumped after the company gave an Amazon.com affiliate a warrant to buy up to 381,922 shares at a higher price than yesterday's close. \n</p>\n<p>\n  The stock was up 9% at $219.97 in premarket trading. Shares were down 8% year-to-date when the market closed on Wednesday and closed roughly in line with where they were trading a year ago. \n</p>\n<p>\n  The maker of outsourced optical components said before the bell that it has entered into a transaction agreement with the Amazon affiliate to acquire the block of shares at an exercise price of about $208.48 apiece. Fabrinet's stock closed Wednesday at $201.88. \n</p>\n<p>\n  The warrant expires 10 years from now and allows for vesting in multiple tranches over the term of the warrant based on payments to Fabrinet from either Amazon or its affiliates under a commercial agreement. If Fabrinet gets acquired or its commercial agreement with Amazon gets terminated by Amazon for cause, the unvested portion of the warrant will vest in full. \n</p>\n<p>\n  Fabrinet said the issuance of the warrant is expected to result in a noncash, stock-based accounting adjustment to revenue of about $4.2 million and will hurt earnings by 12 cents a share. The company cut its earnings outlook for the third quarter accordingly, saying it now expects $2.20 to $2.28 a share and adjusted earnings of $2.43 to $2.51 a share. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to Dean Seal at dean.seal@wsj.com \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 13, 2025 08:58 ET (12:58 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0456855351.SGD","symbol_name":"JPMorgan Funds - Global Equity A (acc) SGD","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2519831374","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2519831374","pubTimestamp":1741870680,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Fabrinet's stock jumped after the company gave an Amazon.com affiliate a warrant to buy up to 381,922 shares at a higher price than yesterday's close.The stock was up 9% at $219.97 in premarket trading. Shares were down 8% year-to-date when the market closed on Wednesday and closed roughly in line with where they were trading a year ago.The maker of outsourced optical components said before the bell that it has entered into a transaction agreement with the Amazon affiliate to acquire the block of shares at an exercise price of about $208.48 apiece. Fabrinet's stock closed Wednesday at $201.88.The warrant expires 10 years from now and allows for vesting in multiple tranches over the term of the warrant based on payments to Fabrinet from either Amazon or its affiliates under a commercial agreement. If Fabrinet gets acquired or its commercial agreement with Amazon gets terminated by Amazon for cause, the unvested portion of the warrant will vest in full.","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","LU0823411888.USD":"法巴消费创新基金 Cap","LU1791710400.SGD":"Fidelity Global Demographics A-ACC-SGD","BK4581":"高盛持仓","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1037948897.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (HKD) INC","LU2463028550.USD":"AB SICAV I AMERICAN MULTI-ASSET PORTFOLIO \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","LU1935042215.USD":"MANULIFE GF GLOBAL MULTI-ASSET DIVERSIFIED INCOME  \"AA\" (USD) INC A","LU1261432733.SGD":"Fidelity World A-ACC-SGD","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","LU2362540622.SGD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (SGDHDG) ACC","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","IE00BYQQ9H92.USD":"BNY MELLON GLOBAL LEADERS \"A\" (USD) ACC","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU2237957811.SGD":"NIKKO AM GLOBAL EQUITY \"F\" (SGD) ACC","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU1934455863.HKD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (HKD) ACC","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","BK4585":"ETF&股票定投概念","LU1935043023.USD":"MANULIFE GF GLOBAL MULTI-ASSET DIVERSIFIED INCOME \"AA\" (USD) INC A","LU2505996681.GBP":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (GBPHDG) INC","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","LU0788109477.HKD":"BGF GLOBAL ALLOCATION \"A2\" (HKDHGD) ACC","IE000ITXATA3.USD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (USD) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU2471134796.USD":"INVESCO GLOBAL EQUITY INCOME ADVANTAGE \"A\" (USD) INC","IE00BQXX3F31.USD":"GUINNESS GLOBAL INNOVATORS \"C\" (USD) ACC","FN":"Fabrinet","BK4566":"资本集团","LU2317271919.USD":"BGF FUTURE CONSUMER \"A2\" (USD) ACC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU2087625088.SGD":"ALLSPRING  US ALL CAP GROWTH \"A\" (SGDHDG) ACC","BK4579":"人工智能","LU0029864427.USD":"TEMPLETON GLOBAL \"A\" (USD) INC","BK4550":"红杉资本持仓","USAW.SI":"AMZN 3xLongSG261006","LU0708994859.HKD":"TEMPLETON GLOBAL \"A\" (HKD) ACC","LU2420271590.USD":"ALLIANZ SELECT INCOME AND GROWTH \"AT\" (USD) ACC","LU2065171311.SGD":"M&G (LUX) GLOBAL MAXIMA \"A\" (SGD) ACC","BK4122":"互联网与直销零售","AMZN":"亚马逊","LU2065171402.SGD":"M&G (LUX) GLOBAL MAXIMA \"A\" (SGD) INC"},"translate_title":"Fabrinet授予亚马逊购买股票的认股权证，提振股价","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMZN":1,"FN":1,"USAW.SI":0.6},"content_text":"By Dean Seal \n\n\n \n\n\nFabrinet's stock jumped after the company gave an Amazon.com affiliate a warrant to buy up to 381,922 shares at a higher price than yesterday's close. \n\n\n  The stock was up 9% at $219.97 in premarket trading. Shares were down 8% year-to-date when the market closed on Wednesday and closed roughly in line with where they were trading a year ago. \n\n\n  The maker of outsourced optical components said before the bell that it has entered into a transaction agreement with the Amazon affiliate to acquire the block of shares at an exercise price of about $208.48 apiece. Fabrinet's stock closed Wednesday at $201.88. \n\n\n  The warrant expires 10 years from now and allows for vesting in multiple tranches over the term of the warrant based on payments to Fabrinet from either Amazon or its affiliates under a commercial agreement. If Fabrinet gets acquired or its commercial agreement with Amazon gets terminated by Amazon for cause, the unvested portion of the warrant will vest in full. \n\n\n  Fabrinet said the issuance of the warrant is expected to result in a noncash, stock-based accounting adjustment to revenue of about $4.2 million and will hurt earnings by 12 cents a share. The company cut its earnings outlook for the third quarter accordingly, saying it now expects $2.20 to $2.28 a share and adjusted earnings of $2.43 to $2.51 a share. \n\n\n \n\n\n  Write to Dean Seal at dean.seal@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  March 13, 2025 08:58 ET (12:58 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"shareholding","news_rank":0,"symbols":[],"gpt_button":0}}}