Amazon Stock Plunges on AI Spending, Regulatory Scrutiny Concerns

Amazon's stock price has fallen by around 4.5% ahead of its July 30 earnings report due to concerns over AI spending, regulatory scrutiny, and weakening cash flow.

The company's aggressive investment strategy in AI and cloud infrastructure is under pressure from rising competition, which investors are questioning whether it will generate sufficient returns to justify the scale of investment.

AWS growth, e-commerce performance, capital spending, and potential financial returns from its massive infrastructure investments will be closely watched by investors as Amazon faces regulatory scrutiny and increased competitive pressure in various markets.