Amazon Stock Slides Ahead of Q2 Earnings Amid AI Spending and Regulatory Concerns

Amazon's stock price has fallen sharply 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 facing increasing pressure as investors question whether it will generate sufficient returns to justify the scale of investment.

Amazon's UK entertainment business may also face new competitive pressure after Sky proposed a move for ITV's broadcast and streaming assets, including ITVX.

The combined business would create a stronger domestic media competitor, potentially forcing Amazon to increase spending on original content or sports rights to maintain engagement in the market.