Amazon Stock Tumbles on AI Spending, Regulatory Concerns and Weakening Cash Flow

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.

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

The company is facing increased regulatory pressure, including a U.S. Senate committee investigation into allegations involving Chinese influence on its online marketplace.

Amazon's entertainment business could also face new competitive pressure in the UK with Sky's proposed acquisition of ITV's broadcast and streaming assets.