Amazon Shares Drop 4.6% Amid Increased Spending Promises from Competitors Ahead of Earnings Report

Key Points

• Amazon shares fell about 4.6% on Thursday, amid market concerns and a new Senate inquiry, despite no earnings report from the company.

• Alphabet increased its 2026 capital spending guidance to as high as $205 billion, while Tesla announced spending will exceed $25 billion this year.

• Amazon will report its second-quarter results on July 30, with current free cash flow significantly down to $1.2 billion from $25.9 billion a year earlier.

Amazon (NASDAQ: AMZN) shares dropped approximately 4.6% on Thursday, influenced by negative market sentiment following other tech companies’ earnings reports and a new Senate inquiry into its marketplace operations. Alphabet revealed plans to elevate its 2026 capital spending to as much as $205 billion, while Tesla disclosed its spending would exceed $25 billion.

As Amazon prepares to report its second-quarter results on July 30, concerns persist regarding its declining free cash flow, which fell to $1.2 billion in the past year from $25.9 billion. Despite the downturn, Amazon Web Services saw a revenue increase of 28% year-over-year to $37.6 billion in the first quarter, marking its fastest growth in over three years.