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Best of StockTwits: Amazon is the Bizarro Facebook

July 27, 2012: 12:58 PM ET

What's the biggest difference between Amazon (AMZN) and Facebook (FB)? Amazon has been spending lavishly for more than a decade ... but CEO Jeff Bezos has been able to prove to Wall Street that the long-term investments are ultimately worth the short-term margin pain. Facebook CEO Mark Zuckerberg clearly hasn't earned that trust yet.

Facebook shares hit an all-time low Friday as investors were disappointed by profits that were merely in-line with forecasts. Expenses nearly quadrupled, leading to concerns that Facebook may be just throwing stuff at a wall and hoping that something will stick. But Amazon's results weren't that great either. Profits plunged. Sales were just okay and guidance wasn't fantastic. But its stock surged 7%! It's like Bizarro World of DC Comics (and Seinfeld) fame.

It just goes to show how important it is for a company to prove itself over time. Amazon is getting the benefit of the doubt while Facebook is not. Still, many StockTwits users are concerned that Amazon shares are priced for perfection.

etfdigest: $AMZN PE approaches 270 PE on declining earnings as bulls bet Santa will deliver on their investments for Xmas. These are big bets. $FDN $$

investorsmosaic:  Wow, being short $AMZN hurts today. And we're short. We thought profitability matters, guess not.

Commodity_Bull: as a tech journo and former buy sider, I will never understand how in the hell $AMZN is up 6.5% this morning with weak guidance & - OM's.

All great points. And I agree. Amazon is probably a bit overvalued. It's a fantastically run retailer but it's still a retailer. Margins are never going to be that high. But people are still extremely excited about Kindle sales and the company's growing cloud business. But there are also many who defend Amazon.

ivanhoff: It looks like $AMZN's main shareholders' base doesn't have an investing horizon of just one quarter

KidDynamiteBlog:  LOL @ $AMZN haters... just because you don't understand it doesn't make it a "scam market"

biggercapital: @mytfine $AMZN is investing all profit into service biz. 10 bil run rate growing at 60%. 100 bil company. The stock is cheap

I do think that Bezos should be applauded for having a strong long-term vision. He does not acquiesce to the fickle short-term demands of Wall Street. Zuckerbeg does seem to have a little Bezos in him too. But again. Facebook is no Amazon yet.

Finally, it's time for the Reader Comment of the Week! I am still chuckling about Sandy Weill's 180 on Glass-Steagall. I joked on Twitter that it would be like the director of Titanic and Avatar criticizing studios for making too many blockbusters. But one reader had an even funnier analogy.

For those about to rock out to a Kenny G soprano sax solo, we salute you!

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Paul Lamonica
Paul R. La Monica
Assistant Managing Editor, CNNMoney

Paul R. La Monica is an assistant managing editor at CNNMoney. He is the author of the site's daily column, The Buzz, and also tweets throughout the day about the markets and economy @LaMonicaBuzz. La Monica also oversees the site's economic, markets and technology coverage.

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