Amazon Stock Slumps as Regulatory Scrutiny and AI Costs Weigh

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 being questioned by investors amidst rising competition.

The decline comes as Amazon faces increased pressure from regulatory bodies, including a U.S. Senate committee investigation into allegations of Chinese influence on the company's online marketplace.

Investors are demanding stronger evidence that Amazon's investments will generate attractive long-term returns, particularly in light of its heavy spending on AI and cloud infrastructure.