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Pros: Spectacular Results Compel PMs to Chase Google Higher

The Fast Money traders put Google front and center on the trader radar Thursday, after shares exploded higher in extended trade.

Investors were thrilled by the latest earnings report, which beat Street expectations and showed revenue surged 32% year over year, with sales totaling a record breaking $9 billion. “And 54% of revenue came outside the US. That’s interesting," says Fast trader Karen Finerman.

"The results certainly laid to rest concerns that the company’s operating expenses would constrain the bottom line," explains trader Joe Terranova. "They didn't. “Watch this stock on Friday I think investors may have to chase this name.”

Trader Guy Adami agrees. He concedes as recently as Thursday afternoon he was bearish but now thinks the game has changed. "PMs could very well have to chase this stock," he says.

"Google should be viewed as a growth company again this quarter. This is well beyond expectations from Wall Street,” says Stifel analyst Jordan Rohan in a Reuters interview.

”Clearly, the combination of mobile search, Android, ad exchange, YouTube, and the core search businesses, they're all doing well. Google is no longer a one trick pony. You might say six trick pony if you count Google Plus."

”Paid clicks were up 18% - a very strong quarter,” adds Guy Adami.

By the numbers Google said its net income in the second quarter was $2.51 billion, or $7.68 a share, up from $1.84 billion, or $5.71 a share, in the year-ago period.

Excluding certain items, Google said it earned $8.74 a share, ahead of the average analyst expectation of $7.85 a share.

Net revenue, which excludes fees paid to partner websites, jumped 36 percent year-on-year to $6.92 billion, ahead of the $6.55 billion expected by analysts polled by Thomson Reuters I/B/E/S.

”This is the wow factor they needed,” adds Jon Najarian.

"It’s an extraordinary franchise and still not that expensive,” adds Karen Finerman.

If you’re looking for a related trade “look into CBS or other businesses in advertising,” says trader Stephen Weiss. Google makes something like 90% of its revenues from ad spending.









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Trader disclosure: On July 11, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Terranova owns (XOM); Terranova owns (HAS); Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX); Terranova is Chief Market Strategist of Virtus Investment Partners, LTD; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm owns (BAC) leaps and Finerman Owns (BAC); Finerman's Firm owns (JPM) leaps and Finerman Owns (JPM); Finerman’s Firm owns (GOOG); Finerman’s owns (IBM); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Weiss owns (JPM); Weiss owns (HBAN); Weiss owns (CMA); Weiss owns (KEY); Weiss owns (COP); Weiss owns (DVN); Weiss owns (HK)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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CNBC.com with wires.