Amazon Stock Tumbles as AI Spending and Regulatory Scrutiny Weigh Heavily

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.

Investors are questioning whether Amazon's aggressive investment strategy in AI and cloud infrastructure will generate sufficient returns to justify the scale of investment.

The company's upcoming earnings report is critical, as it will reveal insights into AWS growth, e-commerce performance, and its financial outlook.