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

Amazon's stock price has declined by 4.5% ahead of its July 30 earnings report, sparking concerns about the company's aggressive investment strategy in AI and cloud infrastructure.

The decline comes as investors reassess Amazon's heavy spending on AI and cloud infrastructure, which is expected to reach $59 billion in capex. This has put pressure on the company's cash flow, with free cash flow becoming a major investor concern.

Regulatory scrutiny and growing competitive pressure are also weighing on Amazon's stock price, particularly in the UK where Sky's proposed move for ITV's broadcast and streaming assets could create a stronger domestic media competitor.