why is amazon stock down

Amazon stock is down primarily due to disappointing growth in its cloud computing division, Amazon Web Services (AWS), which failed to accelerate growth as investors had hoped compared to stronger performances from competitors like Microsoft Azure and Google Cloud. This cloud slowdown, combined with escalating operating expenses and a cautious revenue forecast for the third quarter, has weighed on investor sentiment. Additionally, concerns about possible aggressive interest rate hikes by the Federal Reserve and broader market volatility related to tariffs and economic conditions have further pressured the stock. Despite strong overall revenue growth and positive earnings beats, the market reaction reflects worries about AWS's competitive position in the fast-evolving AI cloud space and the company's hefty ongoing capital expenditures to support AI infrastructure.