But a little more than a week ago, Microsoft withdrew its bid for Yahoo! (YHOO - Get Report). At the time, Microsoft CEO Steve Ballmer said he was withdrawing his firm's increased offer of $33 a share to acquire Yahoo! because Yahoo!'s management was looking for $37 a share. In my opinion, now is the time to grab Microsoft.
Even before the takeover talk, Microsoft was preparing a game plan to challenge Google (GOOG) in the online advertising game. Microsoft is well behind Google in this arena, but that means they have a lot of upside. Plus, Microsoft is way out ahead of Google in the display advertising market. That area should grow much quicker than search advertising, leaving Microsoft in good shape to take advantage of that trend. If you listen to Microsoft's execs, they are talking like they are the favorites in this matchup vs. Google.
Regardless of how it plays out, I am confident Microsoft is a great play today. You can ride it to a quick 10-yard first down, or go deep and take it in for a score.
"Keep moving the Chains!"