Amazon Stock Plummets 4.5% Ahead of Earnings Report Amid AI Spending Concerns

Amazon's stock price has fallen 4.5% ahead of its July 30 earnings report, driven by concerns over AI spending, regulatory scrutiny, and weakening cash flow.

The company's aggressive investment strategy in AI and cloud infrastructure is being questioned by investors, who are demanding stronger evidence that these investments will generate attractive long-term returns.

Amazon's UK position is also facing new competitive pressure from Sky's proposed move for ITV's broadcast and streaming assets, which could create a stronger domestic media competitor.