GOOG vs. MSFT

What is Google's Business Model?

According to its latest 10-K, Google earns over 96% of its revenue from online advertising. The company's advertising programs, such as AdSense, are supported by the power of its search engines, which match keywords from websites or search terms with advertising. The result of this is that Google's results are the most robust on the Internet and its customers derive more value than customers of other advertising engines. It does not hurt that Google's websites are the most used on the Internet, with its core website Google.com being the number one ranked site on the Internet by traffic (Alexa.com, 2012).

While Microsoft has a search business, the company is not oriented as strongly towards it. Bing is the search engine and is ranked #26 in the world by Alexa. Bing is affiliated, however, with Yahoo and that site is the #4 ranked...
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