Amazon Stock Plunges Ahead of Q2 Earnings Amid AI Spending Concerns

Amazon shares fell sharply ahead of its July 30 earnings report as investors reassess the company's aggressive AI investment strategy, rising regulatory risks, and weakening cash flow.

The decline comes just one week before Amazon's second-quarter 2026 earnings release on July 30, placing greater attention on AWS growth, e-commerce performance, capital spending, and potential financial returns from its massive infrastructure investments.

Investors are increasingly questioning whether Amazon's heavy spending on AI and cloud infrastructure will generate sufficient returns to justify the scale of investment.