Why did Amazon stock drop $1.50 today? Is it still a good investment? What is the three month price prediction?

**Amazon's stock dropped $1.50 today**, which can be attributed to several factors:

1. **Regulatory Challenges**: Amazon faced regulatory challenges, including a blocked AI data center power plan, which could impact its operations and growth.
2. **AI Infrastructure Costs**: Warnings from Microsoft and Meta about escalating AI costs influenced investor sentiment and led to a drop in tech-related stocks, including Amazon.
3. **Election-Related Uncertainty**: The upcoming presidential election created uncertainty in the market, causing investors to become more risk-averse and sell off assets.

Despite the drop, Amazon remains a strong investment:

1. **Financial Performance**: Amazon reported a significant revenue increase of 11% year-over-year, reaching $158.9 billion, and an operating income surge of 56% year-over-year, marking the highest quarterly operating income ever.
2. **Growth Prospects**: The company's AWS cloud-based computing business experienced robust growth of 19.1% year-over-year, with an annualized revenue run rate of $110 billion.
3. **Innovation and Efficiency**: Amazon continues to innovate with AI and robotics, enhancing efficiency and safety in its fulfillment network.

**The three-month price prediction** for Amazon is not overly optimistic, with analysts forecasting a median 12-month price target of $220.00, the stock was last at $185.34. This suggests a potential upside, but the stock is not expected to experience a rapid surge.

In conclusion, Amazon's stock drop today was likely a result of regulatory challenges, AI infrastructure costs, and election-related uncertainty. However, the company's strong financial performance, growth prospects, and commitment to innovation make it a solid long-term investment. The three-month price prediction suggests a steady upward trend, but not a rapid increase.