Amazon Stock Plunges as Investors Question AI Spending
Amazon's stock price has fallen 4.5% ahead of its July 30 earnings report, sparking concerns about the sustainability of its aggressive investment strategy in AI and cloud infrastructure.
The company is investing heavily in data centers, cloud infrastructure, and AI capacity, which has put pressure on its cash flow.
Investors are questioning whether Amazon's heavy spending on AI will generate sufficient returns to justify the scale of investment.