Google's (NASDAQ: GOOG) piece of the U.S. search market fell a bit in December. The benefit seemed to go to Microsoft (NASDAQ: MSFT), according to Nielsen data. Google's market share dropped from 57.7% in November to 56.3% last month. Microsoft moved from 12% to 13.3% over the same period.
Microsoft has been offering video games and other merchandise to get consumers to use its online products, so there is a good chance the the shift is temporary. It is a bit like getting a new toaster to open a new bank account. Consumers keep their big account with their current financial institution and move $50 to get that toaster.
The loser in all of this movement was Yahoo! (NASDAQ: YHOO). Its share continues to drop, and fell from 17.9% to 17.7%. Unlike Microsoft, Yahoo! does not have other businesses to fall back on.
Yahoo!'s problems are showing. Its stock fell to $20.07 yesterday, a 52-week low. Its shares have not been below $20 since late 2003. That may be about to change.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
1-20-2008 @ 9:08PM
John said...
It's not a big issue for Google, with their money and overall resources. They are a very targeted organization and will stay on top for a very long time. http://www.phoenix-life-insurance.com
1-22-2008 @ 2:00PM
Thomas Jowers said...
"It's not a big issue for Google, with their money and overall resources. They are a very targeted organization and will stay on top for a very long time."
it is a HUGe issure for Google, Search is 98% of their business, if they lose just a tiny bit of share every quarter to MSFT (i am a shareholder) they will be forced to look at other money streams, other areas where they are not as efficient, MSFT has more money, more contacts, and more resources to battle goog than goog to battle msft, msft is only 4-5 points from taking second place from yahoo.
a purchase of yahoo is going to happen from msft but not until the share price falls below 15 bucks a share, instead of paying 40 billion to buy them, they will only spend about 20-22 billion, Huge savings!
Search for anything online at SeekerBug.com
1-21-2008 @ 3:13PM
KenC said...
I don't think Nielsen's numbers are considered as reliable as comScores.