Amazon Stock Slides Amid AI Spending Concerns and Regulatory Pressure

Amazon's stock price has been under pressure 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 being questioned by investors, who are demanding stronger evidence that these investments will generate attractive long-term returns.

Amazon Web Services (AWS) remains central to the company's growth strategy, but its expansion into AI has raised questions about spending discipline. The company recently announced a $1 billion initiative to embed AI engineers directly within customer organizations.