Amazon shares drop nearly 5% in AI-driven tech selloff ahead of Q3 report

Amazon stock lost roughly 5% on Thursday, October 22, as investors sold AI-linked equities over worries about returns on the huge infrastructure spending now underway. Meta's raised AI spending plan rattled the group, and the Nasdaq 100 fell about 2.9% that session. Amazon's own pressure points cited in coverage include its $220 billion 2026 capital spending plan and trailing twelve-month free cash flow of about negative $7.6 billion. Amazon reports third-quarter results on October 29 after the close, and the AWS growth rate, margins and capex guidance are the items the market is watching. Bulls point to AWS incremental margins approaching 40% and to e-commerce resilience; bears focus on the funding gap from heavy AI capex.

1. Forbes reported Amazon shares fell nearly 5% on Thursday as part of a broader tech and AI-related selloff.
2. Benzinga reported the tech-heavy Nasdaq 100 fell 2.90% on Thursday, with AI-linked stocks leading the decline.
3. Meta's raised AI spending plan was cited as a trigger for the Thursday tech sell-off.
4. Amazon's 2026 capital spending plan is cited at $220 billion, up from $200 billion previously.
5. Trailing 12-month free cash flow was reported at negative $7.6 billion ahead of earnings.
6. Amazon is scheduled to report third-quarter 2026 earnings on October 29 after the market closes.
7. Analysts expect third-quarter revenue of roughly $202 billion and EPS near $1.96, per Benzinga consensus figures.