Amazon Stock Plunges as AI Spending and Regulatory Scrutiny Weigh

Amazon's stock fell sharply in the lead-up to its July 30 earnings report due to growing concerns about the company's investment-heavy strategy.

The sharp decline, which saw Amazon shares drop by around 4.5% to approximately $233, reflects several overlapping concerns rather than a single catalyst.

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