Amazon Stock Plunges on AI Spending Fears and Regulatory Scrutiny

Amazon's stock price has taken a hit ahead of its July 30 earnings report, falling around 4.5% to approximately $233 as investors reassess the company's aggressive AI investment strategy and weakening cash flow.

The decline is driven by several overlapping concerns, including escalating AI infrastructure spending, regulatory scrutiny, and growing competitive pressure.

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