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Midday Wrap: Amazon Performance Shows Investors Want Results, Not a Good Story: StockTwits.com

NEW YORK (TheStreet) -- Show don't tell. The writer's mantra and is becoming the stockholder's maxim.

The performance of momentum stocks Tuesday and a look at the StockTwits' streams couldn't have made it more clear that investors no longer want to listen to stocks with good stories, they want to buy companies that have proven profits and solid growth tracks.

Odd occurrence of MOMO beatdown Tuesday $AMZN $FB $YELp $FEYE $LNKD $TWTR $P - of course TEFLON almost back to flat $SPY

? LMF (@mytfine) May. 6 at 10:40 AM

Amazon (AMZN) epitomizes the change in thinking. Shares are down 22% year-to-date. They fell an additional 2% by midday Tuesday despite Amazon showing progress in the social network arena by teaming up with Twitter (TWTR) to allow customers to add items to their Amazon shopping cart via tweet.

Investors simply didn't care to hear about a new product with the potential to increase profits. Instead, they focused on budget mecca Walmart (WMT) surpassing Amazon in online sales growth -- albeit off of a much smaller base. Walmart's online sales grew 30% vs. Amazon's 20%, a data point highlighted by a trade publication report today and re-reported in the financial press.

Report is out that $WMT online growth was higher than $AMZN last year. Thatmay catch Wall St's eye, since AMZN is a growth story.

? Rotten Al (@RottenAl) May. 6 at 09:55 AM

$WMT web sales grow faster than $AMZN http://stks.co/g0a6C Showing it can compete in e-commerce.

? David Trainer (@dtrainer_NewConstructs) May. 6 at 11:12 AM

The change in focus is telling. The online retail giant once got a pass on losing quarters because Jeff Bezos and Co. were so innovative. Stockholders argued that the company needed to invest to achieve Amazon's goal of becoming the ultimate one-stop shop -- a place where people can buy media and have it streamed straight to their Amazon device or purchase items and receive them in two days -- if not later the same day via drone delivery. No more, say StockTwits' investors. They argue momentum for the online retail giant is now to the downside.

$AMZN Momentum shift..I'm not sure why this kept floating up the past few days. Put time.

? Rish (@androsForm) May. 6 at 09:46 AM

More attractive growth opportunities in China are not helping American growth stories like Amazon either. Chinese Internet giant Alibaba, a company with a trillion in sales, is preparing to debut on U.S. stock markets soon. And some Amazon investors will want to trade-in shares for a stake in the biggest e-commerce company in the world.

$AMZN is going to get a LOT weaker. Alibaba registration statement rumored to come out this week and $TWTR on sale. Breaks $300 soon IMO.

? SkepticalBull (@SkepticalBull) May. 6 at 10:48 AM

But Amazon's biggest problem is that investors no longer want to hear about opportunities. They want to see the money.

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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