ETF Trends
ETF Trends

Microsoft (MSFT) is hot on the trail of search engine operator Yahoo (YHOO) as the software behemoth feels it could better compete with Web search leader Google.

Yahoo shares surged more than 18 percent in morning trading. The New York Post reported Friday that Microsoft has asked Yahoo to
enter formal negotiations for an acquisition that could be worth $50
billion. Yahoo’s market capitalization was about $38 billion on
Thursday.

The Internet HOLDERS (HHH) saw an early morning serge of over 5% as Yahoo accounts for 27% of the market cap of the ETF. Ebay (EBAY) represents 29% and Amazon (AMZN) 14%.

Here’s a case where an under-diversified ETF may have benefited from the recent mergers and acquisition wave. But as we all know, this isn’t always the case.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.