Hess Corp. (HES), Apple Inc. (AAPL): Billionaire David Einhorn’s Latest Shakeups

Yahoo! has a leading position in the display ad market, but this leading position appears to be falling. IDC estimates that Google Inc (NASDAQ:GOOG) overtook both Facebook Inc (NASDAQ:FB) and Yahoo! in the display ad market share last year. What’s more Google is dominating Yahoo! in the search market.

Yahoo! also has a small presence in the mobile search market. However, one of the things shutting Yahoo! out is that Android and iOS, the two most-used operating systems in the U.S., come installed with Google search. Thus, Google already commands close to 100% of the mobile search market share.

One possible reason for the Microsoft sell-off was the fact that the company’s key market is the core computing market. The company is dependent on the PC market for the majority of its revenue. Enterprise could be a big part of Microsoft’s future, but for now, tablets and mobile devices are pressuring Microsoft’s key revenue streams.

Microsoft remains a small player in the search market, and Google’s Chrome is challenging the PC OS market. The other negative for the company is the expected growth in earnings over the next five years is 10% annually, trailing the 18.7% growth expected for the peer group.

Billionaire David Einhorn sees value in following a couple of hedge fund leaders by investing in Hess and Oil States. I believe there is long-term value in investing in both of these stocks. I think there are a number of headwinds for both Yahoo! and Microsoft and would hold off investing in these stocks.