Facebook wants to take over the display advertising on its larger-than-life social network. In the process, it will stop using Microsoft (MSFT) to display the majority of advertising at what is becoming one of the most heavily-trafficked pieces of Internet real estate globally.

Is Microsoft angry? It should be -- every time the world's largest software company crafts some small way to try and compete with Internet advertising leader Google (GOOG), the rugs gets pulled from under it.

How are readers finding the news? Well, increasingly, the answer is Facebook. The social networking site, which boasts well over 350 million registered users, is now the fourth largest referral source of traffic to online news destinations. Almost a year ago, only 0.5% of traffic to news and media sites came from Facebook. Today, that level is 3.5%, according to data from Web analytics firm Experian Hitwise.

Only Google (GOOG), Yahoo! (YHOO) and MSN (MSFT) send more traffic to news sites. Google News, a subset of the search engine giant, failed to keep pace with Facebook, despite the fact that it exists specifically to send Internet users to media outlets. Only 1.39% of referrals came from this source.

You have to love Mark Cuban. The guy basically hasn't stopped chattering about tech and business since selling Broadcast.com to Yahoo! Inc. (YHOO) for billions at the height of the dotcom boom almost a decade ago. Although opinionated, much of what comes out of Cuban's mouth is prescient or garbage. The NBA aside, Cuban's latest foe is none other than Google Inc. (GOOG). The company that promises to "do no evil" is being called a "vampire" by the billionaire blabbermouth. How touching.

Internet search behemoth Google (GOOG) is looking for ways to help ward off cyberattacks, and it appears that they have turned to the National Security Agency (NSA).

According to the Washington Post, an agreement between the two is being finalized. The agreement would help Google with its recent "corporate espionage attack" that it believes originated in China. This attack targeted the company's computer networks. The alliance would help Google, and its users, from any future attacks.

Yesterday was a good day for Baidu (BIDU), the Chinese Internet search portal, after some Wall Street analysts noted that the departure of Google (GOOG) from China could "benefit Baidu tremendously."

BIDU has traded well in the United States, hovering in the upper reaches of the $380 region -- but GOOG's decision to operate in China without censoring local search results after recent cyber attacks pushed BIDU as high as $470 before the stock settled into the lower $400s.

Roughly a third of all mobile users download ringtones and 40% change them on a frequent basis (according to a study from Ipsos MediaCT). More importantly, ringtones are a lucrative source of revenues for mobile carriers and content owners.

To keep up the innovation, the next phase in the market is actually video ringtones. And this is the focus of Vringo, which has filed to go public.

Microsoft (MSFT), the tech giant behind the Windows operating system, whose colleagues include Apple (AAPL), Google (GOOG), IBM (IBM), and Yahoo! (YHOO), issued Q2 numbers after the bell on Thursday. Revenues increased 14%, and diluted earnings per share went up well over 50% to 74 cents.

In terms of expectations, Earnings.com says 59 cents was the number to beat. Obviously, the company had no problem doing that. As the news outlets have been reporting, Windows 7 was the big driver of the quarter's success.

The three major social media sites have been pushing new tools out to their user communities aggressively over the past year. Each company has its own set of rumors, from IPOs to being on both sides of an acquisition. While the ultimate 2010 aims of Facebook, Twitter and LinkedIn may not have been revealed to us yet, it is clear that all three are looking for ways to beef up revenue and demonstrate long-term viability.

Whether or not Facebook goes public this year, it's still pointed toward that ultimate goal. The 350-million member social network is focused on finding new sources of revenue and gaining better penetration into those it already has. Even if it's more than a year away, it's never too soon to start shoring up your financial statements for an IPO. The latest new feature from Facebook, which has been announcing enhancements fairly rapidly over the past few months, is targeted directly at advertisers, underscoring the importance that the company's attaching to revenue growth.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• American Express Co. (AXP) doubled its bottom line in Q4 while its provisions for losses fell.
• Blockbuster Inc. (BBI) warned of weakness in Q4 and lowered its guidance, sending shares lower.
• Coach Inc. (COH) better-than-expected Q2 earnings were accompanied by sales growth, but shares fell.
• Comerica Inc. (CMA) posted a smaller-than-expected Q4 loss, sending shares to a 52-week high.
• CSX Corp. (CSX) posted Q4 earnings that topped estimates but its revenue fell short of expectations.

Google (GOOG) proudly posted its fourth-quarter numbers on Thursday after the bell, probably assuming it would see a bid once the market digested its performance. But it didn't happen. Instead, the market sold the company on what I would call a very good report. Are you getting the feeling that the bullish sentiment on Wall Street is fading away?

The search giant, feared by both Microsoft (MSFT) and Yahoo! (YHOO), among others, said it made $6.79 per share on a non-GAAP basis. Which means management grew the bottom line by a more than respectable 33%. According to our earnings preview, the market was looking for $6.43.

A big player in the tech sector is ready to report today. Google (GOOG) will publish Q4 results later this afternoon. Traders and investors alike get super excited when the search behemoth tells the world how it's doing.

I think the company will show that it's doing quite well. According to Earnings.com, expectations peg the per-share profit at $6.43. If that number is hit, then the growth rate will be a solid 26% (last year at this time, Google made $5.10 per share). Of course, most people aren't interested in hitting the projected stat, they want management to rise above it and demonstrate true earnings power.

Google (GOOG) closed at $580.42. GOOG is expected to report Q4 EPS on January 21. GOOG February option implied volatility is at 33, March is at 30, above its 26-week average of 28, according to Track Data, suggesting larger near term price movement.

Russell 2000 (IWM) overall implied volatility at 24; 26-week average is 29.

Financial Select Sector (XLF) overall volatility at 24; 26-week average is 30.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.