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Diamond or Dud?

The weekly showdown where investors decide if controversial stocks are hidden gems or complete trash

⚡ A few minutes a week to sharpen your market knowledge.

Diamond or Dud is for entertainment purposes only. AssetRoom does not provide financial advice. Figures collected prior to poll publication.

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Why we're voting on GNRC this week

In November 2021, Generac hit $524 a share. Storms, blackouts, and a work-from-home boom sent home generator sales through the roof. Then the rush ended. By late 2022 the stock was below $90 - down more than 80%.

This week, Amazon signed an $8 billion supply deal with Generac for data center backup generators - and took a warrant stake in the company. After hours, the stock spiked 40%. Initial deliveries total $2.4 billion in 2027 and 2028, with Amazon buying the right to acquire up to 1.69 million Generac shares.

Before the Amazon deal even landed, data center backlog had already hit $1.6 billion in Q2 - a billion of that added in the last 90 days. Adjusted EPS of $2.91 crushed the $1.95 estimate. Data center sales crossed $100 million in a single quarter for the first time.

Biggest contract in Generac’s history, and the stock costs less than half what it did in 2021.

GNRC

Generac Holdings Inc.

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Poll Ran

Sep 18 – Sep 25, 2026

Market Cap

~$13B

Q2 Revenue

$1.17B (+11%)

Forward P/E

~21x

Data Center Backlog

$1.6B

What's your verdict on GNRC?

Here's how the community voted

67%

33%

💎 Diamond 💩 Dud

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Diamond Case

Amazon’s $8 billion supply deal is the largest contract Generac has ever signed. Initial deliveries of $2.4 billion are committed for 2027-2028, and Amazon took a warrant to buy 1.69 million Generac shares at ~$201 each. That warrant doesn’t expire until 2033.
Data center backlog hit $1.6 billion in Q2 - a billion of that landed in the last 90 days. Data center sales crossed $100 million in a single quarter for the first time. Full-year data center revenue should hit ~$450 million, with $1.35 billion in orders already slated for 2027.
At ~21x forward earnings, Generac trades at a discount to Caterpillar (~25x) and roughly in line with Cummins (~20x) - despite adding $1 billion in new data center orders last quarter alone. The stock is still 60% below its 2021 high. If data center revenue scales the way the order book suggests, current estimates haven’t caught up.

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Dud Case

The stock already spiked 40% after hours on the Amazon news. The $8 billion is a ceiling, not a guarantee - only $2.4 billion is committed. If Generac stumbles on delivery, Amazon can walk away from the rest.
Caterpillar and Cummins have decades of experience supplying industrial-scale power. Cummins posted $2.25 billion in power systems revenue last quarter alone - roughly double Generac’s entire quarterly sales. Building backup power for a suburban house is not the same as keeping an Amazon data center online.
Generac hit $524 in 2021 on pandemic generator demand, then lost more than 80% when that wave passed. Residential sales dipped 2% last quarter, and the Q2 beat included a one-time $71 million tariff refund. The orders are real, but Generac has burned shareholders on a hype cycle before.

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Diamond Case

Amazon’s $8 billion supply deal is the largest contract Generac has ever signed. Initial deliveries of $2.4 billion are committed for 2027-2028, and Amazon took a warrant to buy 1.69 million Generac shares at ~$201 each. That warrant doesn’t expire until 2033.
Data center backlog hit $1.6 billion in Q2 - a billion of that landed in the last 90 days. Data center sales crossed $100 million in a single quarter for the first time. Full-year data center revenue should hit ~$450 million, with $1.35 billion in orders already slated for 2027.
At ~21x forward earnings, Generac trades at a discount to Caterpillar (~25x) and roughly in line with Cummins (~20x) - despite adding $1 billion in new data center orders last quarter alone. The stock is still 60% below its 2021 high. If data center revenue scales the way the order book suggests, current estimates haven’t caught up.

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Dud Case

The stock already spiked 40% after hours on the Amazon news. The $8 billion is a ceiling, not a guarantee - only $2.4 billion is committed. If Generac stumbles on delivery, Amazon can walk away from the rest.
Caterpillar and Cummins have decades of experience supplying industrial-scale power. Cummins posted $2.25 billion in power systems revenue last quarter alone - roughly double Generac’s entire quarterly sales. Building backup power for a suburban house is not the same as keeping an Amazon data center online.
Generac hit $524 in 2021 on pandemic generator demand, then lost more than 80% when that wave passed. Residential sales dipped 2% last quarter, and the Q2 beat included a one-time $71 million tariff refund. The orders are real, but Generac has burned shareholders on a hype cycle before.

Read our AI summaries of GNRC's quarterly and annual reports

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Diamond or Dud?

The weekly showdown where investors decide if controversial stocks are hidden gems or complete trash

⚡ A few minutes a week to sharpen your market knowledge.

What's your verdict on GNRC?

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