Bing and Google Gang Up on Yahoo!

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Yahoo! (Nasdaq: YHOO  ) just can't seem to catch a break.

Internet-traffic watcher comScore is putting out fresh data on search-engine market share for the month of February, and the Yahooligans are taking yet another step back.

Once again, Yahoo!'s loss is the gain of Microsoft's (Nasdaq: MSFT  ) Bing and Google (Nasdaq: GOOG  ) -- with IAC's (Nasdaq: IACI  ) and AOL (NYSE: AOL  ) far removed from medal contention.


Feb. '10

Jan. '10

Feb. '09




















Source: comScore.

The results shouldn't surprise anyone. Bing has been gaining momentum since replacing Microsoft's effective yet personality-deficient Live Search. The world's largest software company has been aggressively marketing its edgy portal, to apparent success.

Market leader Google keeps inching higher, despite Bing's growth spurt. There's certainly room for more than one grower, since all they have to do is carve up the shells of Yahoo! and AOL.

And what about AOL? Time Warner (NYSE: TWX  ) spun off its fledgling online appendage a few months ago. The move shines a brighter spotlight on AOL's search division, especially at a time when America Online's access subscribers and online advertising continue to fall. If search is where it's at -- and Google's success bears that out -- AOL needs to do a better job there.

Barry Diller's isn't fading away at the same pace as Yahoo! and AOL, which makes its modest decline over the past year a relative victory. It's not much of a threat to Google or Bing, but it may make IAC a compelling buyout target for Yahoo! or Microsoft in their efforts to make up the gap with Google.

This naturally leads us to Yahoo!, where market share has been a serial sinker since the company agreed to outsource its search to Bing. Yahoo! still generates a ton of traffic throughout its portal, but remains challenged to convert traffic into advertiser leads.

March's data should be more of the same. If Yahoo! or AOL don't see the desperation in their gradual fade, they should at least get their eyes checked. They're going to need new glasses as Google -- and eventually Bing -- get even farther away.

Are you buying Internet stocks these days? Which ones? Why? Share your tips in the comment box below.

Microsoft is a Motley Fool Inside Value pick. Google is a Motley Fool Rule Breakers selection. Motley Fool Options has recommended a diagonal call position on Microsoft. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz is a huge fan of all portals and search engine. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1132671, ~/Articles/ArticleHandler.aspx, 10/22/2016 12:38:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 15 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
GOOGL $824.06 Up +2.43 +0.30%
Alphabet (A shares… CAPS Rating: *****
IAC $66.19 Up +0.36 +0.55%
IAC/InterActiveCor… CAPS Rating: *****
MSFT $59.66 Up +2.41 +4.21%
Microsoft CAPS Rating: ****
YHOO $42.17 Down -0.21 -0.50%
Yahoo CAPS Rating: **
TWX $89.48 Up +6.49 +7.82%
Time Warner CAPS Rating: ***