Today's big news is that Yahoo is being taken over by Microsoft. Since both of these stocks would not be good trades lets look at Google and what this means for the search giant.
It means that the stock price will go down in the next week or two. Maybe by as much as 100 points. So you have a good shorting opportunity on this stock if your can get in today around $560.
In the short term people will think that Microsoft/Yahoo merger is a good thing. It is not. Let me be clear Microsoft's search is horrible and its community tools are very lacking (I have used them on many occasions and can speak as an expert on this topic). The people who are loyal to Yahoo will hate changing over to MSN mail or any of the MSN tools. There will be chaos. Eventually earnings will get released and this merger will still be hanging on the books.
Now lets look at Google. Their tools are incredibly robust and easy to use. They are becoming the champions of securing your search patterns and giving the user control of if a history is kept on them or not. Google is making it easier and easier to implement ads on your personal site or blog to generate revenue. They are way ahead of the curve and this will be brought to the forefront by some analyst who thinks they are awesome for figuring his out.
Listen folks lots of people have Yahoo mail and Microsoft Office is a great app that I hope they take online one day but both of these companies do not equal Google. Take it from n objective technies point of view. Sell Google short in the near term and pick up once this news dies down about how wonderful MicroHoo is going to be.
