Google and Amazon Stock (AMZN) Lead Tech Crunch as Google Faces $100M Fine
Big tech companies are declining today, with Google and Amazon stocks moving over 4% lower, as AI bubble deflates and PCE inflation weighs.
Amazon (AMZN) saw a strong surge earlier this month, pushing above $200, but momentum has sharply reversed over the past three days. The stock has now dropped nearly 7% from its recent peak above $206, with today’s session alone seeing a steep 4% decline, including a bearish gap.
Amazon’s Stock Chart Daily – Retreats After Strong Rally
Despite its impressive rally over the past two years—gaining nearly 300% from 2023 to early 2025—Amazon’s stock is now facing increasing pressure. The price has fallen roughly 20% from its all-time high of $242.52, reached in January 2025. This week’s selloff intensified following Amazon’s decision to cut prices on its AI-driven cloud infrastructure built on Trainium processors.
Investor sentiment toward tech and AI stocks has weakened, further accelerating the downturn. The broader market was also shaken by hotter-than-expected PCE inflation data, raising concerns about stagflation and boosting demand for safe-haven assets like gold. Now, all eyes are on whether Amazon’s key support level below $190 can hold.
Google Faces Legal Settlement, Stock Declines
Alphabet (GOOGL) initially gained about 6% earlier this week, adding $10 from its recent lows. However, the rally was short-lived as the stock quickly reversed course, giving up nearly 10% of those gains. Google shares opened lower today, with the price sliding to $155 amid renewed selling pressure.
The decline comes as Google faces a $100 million cash settlement in a lawsuit accusing the company of overcharging advertisers. Plaintiffs alleged that Google failed to honor promised discounts and charged for clicks on ads displayed outside targeted geographic regions. The lawsuit also claims Google manipulated its Smart Pricing system to reduce advertiser discounts artificially.
Conclusion
Both Amazon and Google are seeing increased volatility, with broader concerns over tech valuations, rising inflation, and regulatory pressures contributing to the selloff. While Amazon’s drop is driven by pricing cuts in its cloud division, Google’s decline is partly linked to legal challenges. Moving forward, market focus will be on whether these key support levels hold or if further downside awaits in the tech sector.
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