Why Fabrinet Stock Soared Today
Shares of (NYSE: FN) 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 500 (SNPINDEX: ^GSPC) down 1.4% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) 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.
Source Fool.com
Fabrinet Stock
With 12 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
On the other hand, the target price of 270 € is below the current price of 298.5 € for Fabrinet, so the potential is actually -9.55%.
