Quick Read – Amazon shares shed 4% on Thursday as a Senate China marketplace probe and AI capex fears pushed shares below their 50-day moving average ahead of earnings. – Alphabet’s capex hike triggered a rotation, dragging Alphabet down 6% and Meta Platforms down 4% as…
vestors question whether AI returns justify soaring infrastructure costs. – Bank of America maintains a $310 Buy target on AMZN stock, but Amazon’s TTM free cash flow has collapsed to $1.2 billion as the company’s AI buildout consumes capital. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Amazon didn’t make the cut. Grab the names FREE today
Amazon (NASDAQ:AMZN) stock is down 4% to $234.81 Thursday afternoon, cutting through what had been a relatively steady July trading range for the e-commerce and cloud giant. The move lands inside a broader tech pullback, with the NASDAQ 100 down nearly 2% on the day. Amazon shares now sit well below their 50-day moving average of $251.16.
The drop comes a week ahead of the company’s Q2 2026 earnings release on July 30, sharpening focus on AI infrastructure spending, AWS growth, and any hint of regulatory drag. Today’s slide reflects a confluence of catalysts. AI Capex Jitters and a Senate Overhang The dominant driver is a sector-wide rotation out of mega-cap AI names after Alphabet’s (NASDAQ:GOOGL) capex guidance hike this week.