TradingKey – Amazon (NASDAQ: AMZN) shares are hovering around $245, having pulled back from their May peak of $278.56, as the market balances massive revenue generated by artificial intelligence against heavy investment costs. In Q1, its cloud arm Amazon Web Services, or AWS, grew revenue 28% year-over-year, the fastest it’s posted in 15 quarters.

Meanwhile, the amount of money customers have pre-committed to AI services is $364 billion. But Amazon spent heavily on AI data centers and chips. In doing so, trailing 12-month free cash flow shrank to $1.2 billion. Investors will be watching Q2 results released July 30 to see if AWS growth persists. They’ll also be waiting to see whether free cash flow starts to return. If Amazon closes the…