Amazon Stock Slides Over 1% Premarket – But Cramer Thinks Its Not FTC Pressure: 'At Least Know Why You Are Selling'

Amazon, Inc. (NASDAQ:AMZN) shares pulled back in premarket trading on Wednesday despite a lack of any announcement from the company.

Amazon investors were bidding down the stock after Microsoft Corp. (NASDAQ:MSFT) hinted at higher spending related to AI, said CNBC Mad Money host Jim Cramer.

The stock picker said in a tweet that Amazon's weakness is not due to reports of the Federal Trade Commission preparing a wide-ranging lawsuit that will ultimately break up the company.

Cramer said Microsoft CFO Amy Hood talked about the need to spend for AI despite the company's lead.

Hood said on the earnings call, “So, for FY ’24, the impact will be weighted toward H2. To support our Microsoft Cloud growth and demand for our AI platform, we will accelerate investment in our cloud infrastructure.”

“We expect capital expenditures to increase sequentially each quarter through the year as we scale to meet demand signals.”

Amazon is the market leader in the cloud business, with its AWS segment taking roughly 32% share of the market.

Price Action: In premarket trading, Amazon shares fell 1.70% to $126.93, according to Benzinga Pro data.

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