The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( Trefis) -- Microsoft ( MSFT) Bing's search market share in the U.S. is expanding and currently stands at 14.7% according to research firm ComScore, driven by increasing number of searches conducted online particularly through use of mobile phones. But the same cannot be said about its revenue per search, still a cause for concern for Microsoft. Notably Yahoo ( YHOO) and Microsoft entered into a search advertising partnership in 2009 to boost their search revenues. Yahoo's ads are powered by Microsoft's adCenter platform, which has had consistent technical issues and has resulted in lower RPS for both companies. Yahoo's ex-CEO Carol Bartz has also publicly blamed Microsoft for Yahoo's lower search revenues.
While we estimate Bing's RPS (per 1,000 searches) will decrease from $12.20 in 2012 to $8.60 by the end of our forecast period, Trefis members expect a decrease from $13.10 per 1,000 to $11.90 during the same period. Bing, MSN and aQuantive account for less than 5% of Microsoft's stock price by our analysis. We currently have a Trefis price estimate of $28 for Microsoft's stock, about 10% above the current market price of $24.75. Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.