Amazon Stock Plunges on AI Spending, Regulatory Concerns

Amazon's stock price has fallen by 4.5% ahead of its July 30 earnings report, sparking concerns over the sustainability of its investment-heavy strategy.

The decline comes as investors reassess the company's aggressive AI investment strategy, rising regulatory risks, and weakening cash flow.

Amazon is under pressure to deliver strong results in its upcoming earnings report, particularly in AWS growth, e-commerce performance, and capital spending.

The company faces increasing competition from Alphabet, which raised its capital expenditure outlook, and Meta Platforms, which weakened as investors became more concerned about the rapidly increasing cost of AI infrastructure.

Amazon's UK position is also under threat due to Sky's proposed move for ITV's broadcast and streaming assets, which could create a stronger domestic media competitor.