Bing strikes back

Remember a month ago when people we're freaking out over the one-month drop in market-share by the Microsoft search engine Bing? Well look out naysayers... it's bouncing back!

Microsoft's Bing search engine captured 8.8 percent of the search engine market in September, up from 8.7 percent in August, according to a new report from Compete, a Web analytics company. Google continues to dominate the search engine market with 72.6 percent of all searches performed in September done through the Mountain View, Calif.-based giant; Yahoo ranked third with 14.7 percent of searches.

Google (NSDQ:GOOG), like Bing, also grew from month to month, outpacing its Redmond, Wash.-based competitor, with 0.3 percent growth, from 72.3 percent in August to 72.6 percent in September, according to Compete.

Yahoo (NSDQ:YHOO), on the other hand, was the biggest loser in the search engine market share race. The company saw its query volume drop 8 percent from 1.98 billion searches in August to 1.82 billion in September, contributing to its market share dropping from 15.8 percent to 14.7 percent.

While Google is still doing its thing, it looks like Bing is here to stay (hopefully). The real loser in all of this is Yahoo, which after announcing they'll be using the Bing search engine has lost users to either Google or Bing. Once Microsoft finally takes over all the search capabilities from Yahoo, there might not be any market share left.

Yahoo hauls in a boatload of cash

Yahoo has reported a total net income of $186 million this quarter, up an astounding 244% from last quarter when it netted $54 million. This comes largely because Yahoo cut costs but nevertheless shows how tech companies and raking in the cash in this recession.

Yahoo's surge in profit comes after some major budget trimming, and despite the company's handsome bottom line, its revenue is still falling. Yahoo recorded revenue of $1.6 billion in the third quarter, down 12% year-over-year, and excluding traffic acquisition costs revenue was $1.1 billion. 

Now considering all the issues surrounding Yahoo (i.e. their outsourcing of search engine duties to Microsoft) it seems like a good sign that the company is able to haul in profit at a decent margin. We'll see how this plays out in the coming quarters.