- Steve Jobs' Mark Twain Moment: "Reports of My Death..."
- Google's Silenced Dinner Bell Rings Again!
- Intel Sees Strong 2008—And No Slowdown
- Verizon Searches for Google
- Vista & Seinfeld: Not That There's Anything Wrong with That
- Apple's Back-to-School Bonanza
- Will eBay Users Buy the New Strategy Now?
- Palm Strikes Curious Treo Deal
- Inside Intel Today
- Analyst: Apple's iPhone Devours Market Share
- Student Portfolio Managers Offer Stock Picks
- Fishin' For Views on the Economy
- Bond Prices Slip as Traders Focus on Inflation
- As Biomass Power Rises, a Wood-Fired Plant Is Planned in Texas
- Carmakers Deserve Loan Guarantees, GM Official Says
- US Midwest Business Expands Rapidly; Hiring Down
- Consumer Sentiment At 5-month High in August
- Consumer Spending Flags, But Confidence Rises
- Dell's Margin Erosion Prompts Selloff
 |
CNBC.com |
] in its second quarter was a surprise, the company's online business growth is a stunner, especially as the company tries to chip away at Google's [GOOG
Loading...
()
] near total dominance. Stunning because while independent market research has suggested Microsoft continues to enjoy incremental gains in search market share, the company is doing nothing to dampen expectations that this momentum is merely just beginning. And while that's not such good news for Google, it's particularly distressing for Yahoo [YHOO
Loading...
()
] .
Why? Microsoft gained a full point in search market share, according to Nielsen Online, with 14 percent, narrowing the gap to Yahoo's 18 percent, but still way behind Google's 56 percent. But in our exclusive interview with Microsoft's chief financial officer Chris Liddell earlier this morning, he told me Microsoft was more than pleased with the dramatic gains the company is seeing in its online business. (Read my post on the first part of the interview here.)
The company posted $863 million in revenue, a 38 percent jump; analysts had anticipated $839 million instead. And even though the loss in that division almost doubled, year over year, from $118 million to $245 million, if the Xbox model is any indication, Microsoft's "you gotta spend to earn" may work yet.
related content |
"Really that's a multi-year journey that we're going on, and we're still a long way from getting to critical mass," Liddell tells me.
Message: growth is going well, Microsoft's on track, and has a long-term time horizon for staking its claim online. Anyone looking for an overnight drubbing of Google might be disappointed. Microsoft clearly has the deep pockets to fund a longer-term strategy. We all scoffed at Xbox, its slow start, and Microsoft's attempts at taking the fight right to Sony's [SNE
Loading...
()
] doorstep. Who's to say the exact same scenario won't play out online as well as Microsoft tries to take on Yahoo and Google?
Does this make a Microsoft play for Yahoo more possible? Lots of chatter along those lines this week, though I still believe that's a long-shot. Intriguing, but a long shot.
All of this makes Yahoo's earnings news Tuesday and Google's the following Thursday very interesting indeed. Stay tuned!
Questions? Comments?
Del.icio.us
Digg It
Data is a real-time snapshot *Data is delayed at least 15 minutes