How Amazon Sent Velodyne Stock Charging Higher on Tuesday

Shares of Velodyne Lidar (NASDAQ: VLDR) charged sharply higher Tuesday, surging as much as 29.2%. As of 11:30 a.m. ET, the stock was still up 12.5%.

The catalyst that sent the light detection and ranging (lidar) systems specialist higher was a deal that could lead to a significant ownership stake by Amazon (NASDAQ: AMZN).

In a regulatory filing late Monday, Velodyne disclosed that it had entered into an agreement with the e-commerce giant. Velodyne issued a warrant that would allow Amazon to buy as many as 39.6 million shares of Velodyne stock, or nearly 16% of the company, at an exercise price of $4.18 per share.

Source Fool.com