Amazon Stock Plunges Amid Rising Concerns Over AI Spending and Regulatory Scrutiny

Amazon's stock price fell by 4.5% ahead of its July 30 earnings report, as investors grew concerned about the company's aggressive investment strategy in AI and cloud infrastructure.

The sharp decline comes amidst rising competition, regulatory scrutiny, and weakening cash flow, raising questions about the sustainability of Amazon's approach.

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