Search traffic using Yahoo (NASDAQ:YHOO) is falling off a cliff. Its percentage share of U.S. searches has fallen over the last three months from 15.1 percent to just 14.1 percent. The beneficiary – who else but Google (NASDAQ:GOOG) — whose shares went up during this period from 65.4 percent to 66.2 percent.

The decline in search volumes will take a toll on Yahoo’s revenues from ad money generated from searches. Yahoo has a revenue sharing arrangement with Microsoft (NASDAQ:MSFT) whose Bing powers Yahoo’s searches.

Yahoo’s tie-up with Microsoft has not dented Google’s relentlessly increasing search volume share. To put the figures in perspective, they do not include searches outside the U.S., where Google is even more powerfully entrenched. Also, these figures relate to direct, search box-entered queries, and do not include incidental searches such as mobile search.

Here’s how major search engine stocks are reacting to the new data:

Yahoo! Inc. (NASDAQ:YHOO): YHOO shares recently traded at $15.95, up $0.17, or 1.08%. They have traded in a 52-week range of $11.09 to $18.84. Volume today was 9,238,209 shares versus a 3-month average volume of 19,133,000 shares. The company’s trailing P/E is 19.46, while trailing earnings are $0.82 per share.

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $610.34, up $0.49, or 0.08%. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 843,107 shares versus a 3-month average volume of 3,022,020 shares. The company’s trailing P/E is 20.53, while trailing earnings are $29.76 per share.

Microsoft Corporation (NASDAQ:MSFT): MSFT shares recently traded at $30.54, down $0.12, or 0.39%. They have traded in a 52-week range of $23.65 to $30.67. Volume today was 14,963,387 shares versus a 3-month average volume of 54,502,100 shares. The company’s trailing P/E is 11.09, while trailing earnings are $2.76 per share.

AOL, Inc. (NYSE:AOL): AOL shares recently traded at $18.15, down $0.02, or 0.11%. They have traded in a 52-week range of $10.06 to $22.47. Volume today was 232,272 shares versus a 3-month average volume of 1,460,800 shares. The company’s trailing P/E is 151.42, while trailing earnings are $0.12 per share.

IAC/InterActiveCorp. (NASDAQ:IACI): IACI shares recently traded at $44.69, down $0.54, or 1.19%. They have traded in a 52-week range of $28.60 to $47.96. Volume today was 263,384 shares versus a 3-month average volume of 976,881 shares. The company’s trailing P/E is 24.22, while trailing earnings are $1.85 per share.

To contact the reporter on this story: Damien Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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