2 Companies Benefiting From Windows 10 (Hint: Not Microsoft)

Daniel Kurnos of Benchmark said that adoption of Microsoft Corporation (NASDAQ: MSFT)'s Windows 10 has been "fairly rapid despite some initial glitches," with more than 53 million installs. While the adoption rate is good for Microsoft, Kurnos said it was also a positive for Perion Network Ltd (NASDAQ: PERI), IAC/InterActiveCorp (NASDAQ: IACI) and Blucora Inc (NASDAQ: BCOR).

Perion is the "most obvious beneficiary" as it is Bing's largest affiliate provider with preferred status. Despite beating expectations in recent quarters, investors have doubted Perion's performance. Perion stock has been beaten down this year, falling more than 42 percent to close Wednesday at $2.53.

IAC, on the other hand, has performed well this year. The company, which has an upcoming search renewal, may benefit from a stronger Bing. While Benchmark said that it expects Google to "retain the business," despite initially believing that IAC would switch to Yahoo. However, Bing – "with an improved mobile platform" – could win the IAC business.

The final company that Benchmark said it expects to benefit is Blucora, who also uses Bing for its search functions. While it may take three to six months to "reallocate traffic," the company has yet to incorporate any benefit from wider Bing adoption into its guidance. Shares reflect a negative equity value for the Search division, Kurnos argued.

Benchmark maintained Buy ratings on Perion, Blucora and IAC.