3M (NYSE: MMM) shares rose 4.5% in premarket trading on Tuesday after the company announced an expanded commercial relationship with an Amazon subsidiary and plans to acquire about 4.7% of Taiwan-based Genius Electronic Optical Co. (GSEO) through a private placement; financial terms of that investment were not disclosed. Under the expanded agreement announced late Monday, 3M issued Amazon a seven-year warrant to buy up to 3.16 million common shares at $164.89 per share, a potential value of more than $521 million if fully exercised. About 85% of the warrant shares vest based on Amazon's cumulative qualifying purchases of optical interconnect and other data centre products from 3M, with full vesting once those payments reach $6 billion. The GSEO investment relates to 3M's Expanded Beam Optical solutions used in data centre connectivity.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/19/2026 | 262.45 |
| Change that session | +4.98% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- 3M stock rises 3% on $6B Amazon data center deal
3M shares rose 3% in after-hours trading after announcing a strategic commercial agreement with Amazon covering data center products. Under the deal, 3M issued an Amazon subsidiary a warrant to buy up to 3,162,015 shares at $164.89 per share over seven years. 85% of the shares vest based on cumulative Amazon payments for data center products, with full vesting once payments reach $6 billion, while the remainder depends on event-based milestones not detailed in the filing. The agreement, formalized on October 19, 2026, centers on 3M supplying optical connectivity and other data center products to Amazon.
- 3M Stock Jumps on Amazon Warrant: What the $6 Billion Really Means
3M shares rose about 4.4% to around $169 in pre-market trading after the company gave Amazon a warrant for up to 3,162,015 shares at $164.89 each over seven years, tied to Amazon's data center purchases. Shares vest as Amazon pays for optical connectivity and other data center products, fully at $6 billion in cumulative payments, though nothing in the filing commits Amazon to buy. Spread evenly over seven years, that is about $857 million a year, roughly 3.4% of 3M's trailing revenue of $25.18 billion and 1.4 times the about $600 million 3M expects from data center work in 2026. Under US accounting rules the warrant reduces revenue, and 3M has not disclosed its fair value. Adjusted EPS of $2.50 beat the $2.39 consensus, but the article says the beat is smaller once the exclusion of intangible amortization is considered, and guidance rose to $9.10 to $9.15.
- 3M Jumps On Expanded Amazon Data Center Deal; Earnings On Tap
- MMM Stock Jumps Overnight: Amazon Could Own A Piece Of 3M If It Spends $6B On Its Data Center Products
According to an SEC filing, 3M granted an Amazon subsidiary a warrant to acquire up to about 3.16 million shares over seven years at $164.89 per share, and 3M stock rose 5.5% overnight. Most of the shares (85%) vest when Amazon's cumulative payments for optical connectivity and other data center products reach $6 billion, while the remaining 15% tie to event-based milestones the filing does not detail. Microsoft said in July it would use 3M's Expanded Beam Optical (EBO) technology in its Azure AI data centers, reflecting growing networking needs as AI expands. On Monday, 3M also announced a partnership with Taiwan-based Genius Electronic Optical Co. (GSEO) and a planned share purchase giving it an approximately 4.7% stake, with closing expected in the fourth quarter.
- 3M Beat Estimates and Raised Guidance. Why an Amazon Deal Is Driving the Stock.
- Dow Giant 3M Reports Mixed Earnings, Expanded Amazon Data Center Deal
Related markets
Latest news
- Chips Are Selling Off and Apple Just Hit a New High. What Splits the AI Trade
Chip stocks sold off last week, with the iShares Semiconductor ETF (NASDAQ:SOXX) down 13.31%, while Apple (NASDAQ:AAPL) rose 2.11% and sits about 1.5% below its 52-week high. The article argues Apple benefits from AI by selling it across more than 2.5B active devices, rather than through heavy infrastructure spending like hyperscalers, and notes revenue grew 16.4% year over year last quarter. The stock trades at $342.96 against a 24/7 Wall St. 12-month target of $397.78 (15.99% upside), with a bull case of $451.56 driven by Siri AI and iCloud Plus upgrades. Risks include memory costs, which Cook called “a 100-year flood,” and gross margin guidance of 47% to 48%; the consensus target of $329.38 sits below the current price. The piece also compares Apple’s P/E with NVIDIA and Microsoft, concluding Apple has less exposure to AI infrastructure spending.
- September data shows housing market in a deep freeze
Rising mortgage rates took a harsh toll on the housing market in September. Pending home sales, which measure signed contracts on existing homes, fell 7.3% from August and 11.3% year over year, according to the National Association of Realtors. The average 30-year fixed mortgage rate climbed from about 6.8% to 7.6% during the month, and sales fell most sharply in the South (-8.2%) and West (-9.2%). Housing starts dropped 4.56% to 859,000 annualized, the lowest since September 2025, and building permits fell 4%. Homebuilder sentiment in October hit its lowest level in 14 years, and economists expect construction to stay weak into 2027.
- Revealed: the foreign 'big spender' that has poured over USD 100 billion into Vietnam
Foreign direct investment (FDI) registered in Vietnam topped USD 50 billion in the first nine months of 2026, up 76.4% year on year, while disbursed FDI reached over USD 21.07 billion. Singapore led with USD 12.85 billion in registered capital, up nearly 86% and over a quarter of the national total, ahead of South Korea at over USD 3.1 billion. Singapore's new projects totaled USD 9.26 billion, with USD 2.32 billion in capital increases at existing projects and over USD 1.26 billion in capital contributions and share purchases in domestic firms. Cumulatively, Singapore has passed USD 101.5 billion, becoming the second partner to exceed USD 100 billion and narrowing the gap with South Korea to about USD 2.7 billion. The Ministry of Finance attributes the inflows to the Strategic Partnership and cooperation in green and digital economy.
- Savings interest rates on October 20 at Agribank, Vietcombank, VietinBank and BIDV: Large gaps at 12-24 month terms
After Agribank and Vietcombank cut deposit rates, the rates at the four state-owned banks diverged more clearly. For 1-3 month terms, Agribank is highest at 2.6%-2.9% per year, while Vietcombank, VietinBank and BIDV offer 2.1%-2.4%. For 6-9 months, Vietcombank's 3% per year is below the 3.5% offered by the other three. From 12 months up, BIDV and VietinBank stay higher, at 5.9% for 12 months and 6% for 24 and 36 months, while Vietcombank offers 4.8% for 36 months. These are counter rates for individual customers and may change by term, deposit amount, channel and each bank's policy.
- Anthropic Will Be The Last AI IPO Of 2026, As Industry Collapses
Business Insider founder Henry Blodget noted Anthropic’s month-over-month revenue growth flattened last month, while the article says AI funding is tightening: CoreWeave (NASDAQ: CRWV) is paying up to 13% on new debt, SoftBank has debt problems, and as many as 1,000 communities are trying to block AI data centers. Borrowing for data centers could reach $1 trillion a year through 2030, and shares in AI data center company Elice fell 33% on its IPO launch, the worst opening day for a sizable Korean IPO according to Bloomberg data. The article says Anthropic could be valued at around $2 trillion on IPO day, but under GAAP it is not profitable despite management’s claims, and a trust controlling the board has incomplete disclosures. It concludes Anthropic may list, possibly below $2 trillion, while no other AI firm is likely to IPO this year.
- Amazon to hire over 300,000 holiday workers, up 20% from last year
Amazon plans to hire more than 300,000 workers across its U.S. core operations network for the holiday season, a 20% increase over last year, while overall retail hiring is expected to soften to its lowest level since 2008. Seasonal starting wages average $20 per hour, and full-time core operations staff average nearly $24 per hour. From January 1, 2027, Amazon will extend healthcare benefits to seasonal employees working at least 30 hours per week, with plans starting at $5 per week. The company has committed more than $1.5 billion to wage increases, bringing average full-time compensation including benefits to over $32 per hour. The article frames these moves as a way to shield the supply chain from labor bottlenecks during peak demand.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.