goog

This coming week is the "real" beginning of first quarter earnings season. Major banks like Wells Fargo (NYSE: WFC) and Bank of America (NYSE: BAC) are set to report first quarter results and hopefully, provide a better view of the mortgage market. The other headline grabbers for the week could be both IBM (NYSE: IBM) and Google (NASDAQ: GOOG). Rumor on the trading desks is that IBM is poised to have a big first quarter in spite of the normally slow first quarter for technology.

Several trading desks have seen short positions in both IBM and GOOG being covered. One large market maker for Google told me he had four separate accounts cover their short position in Google and then open up long positions. With March search engine activity showing Google further increasing its market share to above 60% according to Hitwise, could be the prelude of another huge quarter for Google and continued momentum going forward. Of course, comScore data shows Google holding 47.5% of the market in March. Whatever it is, Google seems unstoppable as it increases it search market share.

Search engine activity is the core of Google's business mantra. All the other lines of business emanate from the search engine activity. The search engine is the straw that stirs the Google drink. Any increase in search engine market share is actually additional gravy for the Google train. Some thought early in the quarter that perhaps the train was going to wreck. They have begun to change their minds and put the dollars to work behind that feeling.

Google's upcoming acquisition of privately-held DoubleClick demonstrates Google's intention to dominate the marketing/advertising/lead generation sector of the overall internet space. Google will not be shy in spending the dollars necessary to flex its reach and scope. Many trading desks think that if Google does put up another excellent quarter, the shares are bound to run back up over $500.

The numbers for Google will be out Thursday after the close and BloggingStocks Brian White will be liveblogging the conference call. The call, will also have the usual listeners consisting of portfolio managers, analysts, traders, individual investors and the management of companies that are fearful of Google's next move. All will be listening for the slightest hint of business trends that Google sees or is interested in developing.

I wonder if Microsoft's management team will be listening in....

Georges Yared is the CIO of Yared Investment Research.