Ahead of the Bell: Google shares up after earnings

NEW YORK - Google Inc. shares edged higher in premarket trading Friday as analysts praised Google's ability to still beat profit estimates and grow revenue amid the dismal economy.

Shares rose $2.55 to $309.05 in early electronic trading, having closed Thursday at $306.50 ahead of the Mountain View, Calif.-based company's fourth-quarter earnings report.

The Internet search giant posted a 68 percent drop in profit year-over-year, but still beat analysts' expectations. And sales continued to grow at a double-digit clip despite a downturn in the online advertising market — Google's core business.

"Google's revenue growth proved remarkably resilient," Jefferies and Co. analyst Youssef Squali told investors in a note. He reiterated a "Buy" rating on shares.

Gene Munster, a Piper Jaffray analyst who also holds a "Buy" rating, agreed, saying, "The bottom line is that Google posted its second consecutive quarter beating estimates in a poor economy."

Deutsche Bank-North America analyst Jeetil Patel also reiterated a "Buy" rating on shares, saying the company's growth is intact. While Patel thinks Google might be able to capture companies' un-spent marketing budgets in coming quarters, he trimmed his price target to $390 from $480 to reflect lower earnings multiples in the current economy. in coming quarters.

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