Fabrinet stock surged after Amazon partnership announcement

Fabrinet's stock rose 10.8% on Thursday, despite a decline in the broader market. The increase followed the announcement of a strategic partnership with Amazon, which will buy shares of Fabrinet. Amazon will purchase 381,922 shares at $208.48 each, with a warrant expiring in 2032. Nearly 40,000 shares have already vested, with the rest contingent on future payments. This partnership positions Fabrinet to benefit from Amazon's growth in artificial intelligence operations. The company has a strong financial standing with low debt, allowing it to capitalize on increased spending in the tech sector.