Amazon shares fell 4% to $234.81 on Thursday, dropping below their 50-day moving average of $251.16, as a Senate China marketplace probe and AI-capital-expenditure fears weighed ahead of the company's Q2 2026 earnings release on July 30. The broader tech pullback saw the NASDAQ 100 down nearly 2%. Alphabet's capex guidance hike triggered a sector rotation, dragging Alphabet down 6% and Meta Platforms down 4% as investors question whether AI returns justify soaring infrastructure costs. Per a Bloomberg report roughly 17 hours old, the U.S. Senate Small Business Committee is investigating allegations Amazon allowed Chinese influence on its online marketplace; Republican committee staff said they found "compelling evidence" of Amazon "negligence related to Chinese influence," though the cited committee email "didn't cite any specific evidence." The probe stems from an earlier Bloomberg story about an alleged bribery market involving Amazon employees in China. Amazon declined to comment. Separately, CNBC reported layoffs in Amazon's artificial general intelligence unit. 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. Amazon stock trades at a trailing-twelve-month P/E ratio of 28x.