Amazon Stock Slumps on AI Spending Concerns and Regulatory Scrutiny

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

The decline comes as investors question whether Amazon's aggressive investment strategy in AI and cloud infrastructure will generate sufficient returns to justify the scale of investment.

Amazon is among the largest corporate spenders on data centres, cloud infrastructure, and AI capacity, with a $59 billion capex plan that has put pressure on cash generation.

The company's UK entertainment business could also face new competitive pressure from Sky's proposed move for ITV's broadcast and streaming assets, including ITVX.