Bing Inside: Death Exaggerated

| About: Microsoft Corporation (MSFT)
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One of the big news stories today is that Yandex, a Russian-made search engine, has overtaken Microsoft (NASDAQ:MSFT) Bing to become number four in the market.

Nice story. But if you're moving money based on this story, you are making a big mistake.

Just look at the story. It has Google (NASDAQ:GOOG), of course, at number one, followed by China's Baidu (NASDAQ:BIDU) , Yahoo (YHOO), then Yandex and Bing. Baidu's high placing is thanks to China's Great Firewall, which prevents Google from competing on an even level in that market. It's the electronic version of protectionism. So ignore it.

For that matter, you should probably ignore Yandex too. As CNET notes, it's dominant in its home market of Russia, and in other related Asian markets, but that's really it.

Then we have Yahoo. Well, you do know that Microsoft Bing is the actual search engine used by Yahoo on Yahoo searches? You don't? Well, it is. You probably missed that because the news from that front involves Yahoo using Google for advertising on its sites.

Then we have Facebook (NASDAQ:FB). Remember graph search? That was a big deal when it was announced. But did you know that graph search searches which fail to generate enough data for a graph default to Bing? That was part of the announcement. In fact, Bing has been the default search engine for Facebook since 2008.

Bing is becoming an ingredient brand, more like Intel Inside. As such, it's seen as increasingly important by Web sites that don't want to push users toward Google, which they see as a potential competitor. Google Plus is aimed directly at Facebook, and Google Shopping is now aimed directly at sites like Pinterest. Google is embracing and extending from search in the same way Microsoft embraced and extended from Windows in the 1990s. And anyone in the way is being pushed toward Bing.

All of which means that Bing has a solid future, and will be delivering more clicks over time. The reports of its death, and that of Microsoft's online death in this case, are exaggerated.

Disclosure: I am long MSFT, YHOO, GOOG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.