Amazon shares fell about 5% on Monday as investors again questioned whether the company's heavy artificial-intelligence spending will translate into faster returns, with the selloff coming just before its Prime Day event. Amazon said Prime Day runs from June 23 to June 26, and the company is using the four-day sale to showcase Alexa for Shopping, a tool that can build deal guides and send alerts to members. Reuters reported in February that the company projected more than $200 billion in 2026 investment tied to AI infrastructure, including data centers and chips, which has helped fuel investor concern about near-term margins. Amazon's latest quarter showed strong growth in retail, ads and AWS, but investors are watching whether Prime Day can lift sales without leaning too heavily on lower-margin essentials.
Amazon.com IncInvestors fear heavy AI spending will hurt near-term margins, causing a 5% drop.