Tag: MMM

3M ($MMM) is up over 5%, on track for its best day since July, and second best since last October, after expanding its relationship with a wholly owned subsidiary of Amazon.com, Inc. ($AMZN). Under the deal, 3M issued warrants for the purchase of nearly 3.2 million shares of the company over seven years tied to the amount of spending from Amazon on “expanded beam optical ferrules,” which can can connect servers in seconds rather than minutes, taking six months off a data center’s construction time, the company says according to the WSJ.

Eighty-five percent of the warrant shares will vest based on Amazon’s cumulative payments for 3M’s optical connectivity and other data center offerings, with full vesting of that portion once payments reach $6 billion according to TipRanks.

Also helping was a beat on earnings and raise to its full year’s forecast. Adjusted earnings are expected to be $9.10 to $9.15 a share this year, up from a prior range topping out at $8.95. Analysts had anticipated $8.94 a share on average in estimates compiled by Bloomberg.