M&A deals are continuing to drive the market upward. What's this I hear about Microsoft(MSFT) possibly acquiring Yahoo(YHOO)? That would be nice for Yahoo, whose performance has dwindled in the past year or so. I think Microsoft has just been reaching, and now are showing their vulnerability. While they have created many great products over the years, to me they are just being beaten creatively by companies like Apple(AAPL) and Google(GOOG). Look at their attempt into the mp3 player market. Their Zune product offered little buzz in a market that thrives on it. Their Vista product hasn't been received all that well, and many companies have refused to change to it. And now this? To give you an idea of Google's dominance in the search advertising market, consider this: If Yahoo and Microsoft combined, they would control 27% of the market to Google's 65%, and that's if they combined!
Simply put, I think Google is the company of the present, and certainly the future. They are making timely, well executed purchases, and are simply more creative hard working than its competitors.