Amazon Senate investigation and stock trend

In late July 2026, Amazon’s share price fell about 4.6% amid the announcement of a Senate probe into alleged Chinese influence over its marketplace. The drop occurred alongside a broader sell‑off in mega‑cap tech stocks, but the company’s cloud division, AWS, continued to post strong growth – a 28% year‑over‑year revenue increase, its fastest expansion in 15 quarters – and Amazon reaffirmed its large AI‑related capital spending plans.

A week later, Amazon released its first‑quarter FY26 results, showing revenue of $181.5 billion (up 16.6%) and earnings per share of $2.78, comfortably beating expectations. The robust performance, driven by AWS and an expanding advertising business, led analysts to raise the stock’s price target and project further upside. However, the ongoing Senate Small Business Committee investigation into alleged Chinese‑linked bribery of third‑party sellers continued to weigh on sentiment, causing a brief dip in the share price despite the positive earnings outlook.