Google (GOOG) reported good quarter last week. Main number: year-to-year revenue and earnings growth. Reaction of financial press: advertising is coming back, it's the end of recession.
Not so fast, guys. First of all, Google is the only advertising company so far showing improvement. Yahoo! (YHOO) reported revenue drop. I'm not sure traditional media is going to report any improvement either.
I think the main driver for Google is the shift of advertising from traditional media to the Internet. Yahoo! missed this move, company is too busy with reorganizations. We'll see traditional media reports soon, but I don't see any pin action. Google is swallowing advertising market, that's the real picture.
Full disclosure: at the time of publication author had a long position in GOOG and no positions in YHOO. Positions can change any time.