Nokia (NOK - option chain) stock is trading lower today after an analyst with Strategy Analytics said the company's market share in global handset sales will fall to 33% for the fourth quarter of 2010, down from 39% in 2009. Traders are also selling off in anticipation of the first earnings release under the new CEO. It is common wisdom that the first earnings usually feature a round airing out the last guy's dirty laundry. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on NOK.

Microsoft (NASDAQ: MSFT) has never been shy about announcing grand plans. But in the arena of online advertising, that plan may simply be to move into second place.

Reuters reports that "the plan, which represents Microsoft's aspirations over the next three to five years, calls on Microsoft to increase the company's share in web search, page views, percentage of time on the internet and percentage of advertising dollars." The world's largest software company is clearly way behind Google (NASDAQ: GOOG) in online dollars, and also trails Yahoo! (NASDAQ: YHOO).

The cornerstone of Microsoft's plan is to get its share of the online search market from 10% to 30%. Those that think that number is crazy get a gold star.

For Microsoft to presume that it can triple its share of search means that Google would have to lose at least 10 points of its market share and Yahoo!'s piece of the market would be cut in half. There is absolutely no evidence that the Microsoft search product is anywhere close to Google's in quality of results. And, internet search habits for most users are probably fixed and would be hard to change.

Microsoft having 30% of the search market is not unlike it taking a third of the market for music players from the Apple (NASDAQ: AAPL) iPod. The big software company has tried that with the Zune and the results have been embarrassing.

Douglas A. McIntyre is an editor at 247wallst.com.

Lately, YouTube has been getting tons of buzz. But, according to the latest stats from ComScore, MySpace is the dominant site for video.

Is that right? Video?

Yes.

In August, MySpace generated about 1.4 billion video streams, which accounts for 20.1% of the overall US market.

So, the #2 must be YouTube? No, it is actually Yahoo! It's market share was 11.8%. In fact, Yahoo! Inc. (NASDAQ:YHOO) was #1 for the number of users who streamed at least one video.

Rather, YouTube is #3 on the list, with a market share of 9.9%.

Basically, ComScore thinks it is critical to focus on streams (not unique visitors). After all, advertisers want to place ads in streams.

No doubt, the online video space has grown much faster than expected. And, as a result, the metrics that may apply to the traditional online world may not necessarily work with video.

Despite this, the fact remains that YouTube is a major video property. But, at least according to ComScore, MySpace looks like the dominant player. And, while Google spent $1.6 billion for YouTube, News Corp spent "only" $580 million for MySpace.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Last night's earnings warning from Dell bodes ill for Microsoft and Intel.

Having finished teaching Competitive Strategy and Environment last night to 36 MBA candidates, I am in a state of heightened awareness about the profound strategic implications of the Dell announcement. Here are four important concepts and the implications for Microsoft and Intel:

• Complementary goods. When people buy a new house, they also buy furniture and appliances. The furniture and appliances are complementary goods. When they buy a PC, they've got to purchase software. And when they buy Dell, they inevitably buy Microsoft software. As Dell's growth falters, Microsoft sales will be hurt as well unless Dell's competitors can take up the slack.
• Industry structure. There are very few industries where suppliers are able to negotiate the lion's share of the profits. The PC industry is one of the exceptions. Here, Microsoft and Intel have used what was a virtual monopoly to extract high profits from PC-makers. But this supplier power may be eroding -- due to the rise of AMD as a real competitive threat -- as Intel's latest earnings disappointment reveals.
• Generic strategy. During the 1990s when its market share climb was at its most aggressive, Dell was the low cost producer. As my Computerworld analysis reveals, in 1996 Dell enjoyed a 13.6% cost advantage over its biggest competitor at the time, Compaq. Dell passed much of this cost advantage on to its customers in the form of lower prices -- thus gaining market share. The loss of Dell's advantage suggests that Microsoft and Intel may want to find other horses to ride.
• Sustainable competitive advantage. Fast forward 10 years and suddenly Dell's cost advantage has been eroded by competition from Taiwan-based contract manufacturers to whom Dell -- and competitors such as HP -- outsource the manufacture of notebook computers. By depending on Taiwanese manufacturers, Dell eroded its competitive advantage since no barriers prevented these competitors from doing the same. Should Microsoft and Intel be dealing directly with the contract manufacturers?