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Google's Cash Hoard 'Astonishing' Given Costs: Analyst

Can Google do no wrong?

There may be analysts concerned about the Internet search giant's strategy and what it plans to do with its cash hoard, but Barclays Capital Internet and media analyst Anthony DiClemente isn't one of them.

It's been "really just an incredible quarter that’s difficult to poke holes in," he told CNBC Friday.

DiClemente said Google's $42 billion in cash is "astonishing" considering the company's advertising business has fixed costs and high margins.

The search business is a big factor.

"You’ve got incredible growth and volume in search queries globally," DiClemente said a day after Google reported earnings and revenuethat blew through expectations. "People might say the price is decelerating. We do not think that is a concern."

Thanks to revenue growth of more than 30 percent, "it doesn't matter" that Google reported increased operating expenses that included hiring more people, he added. Nor is he as concerned as others about Google's planned acquisition of handset maker Motorola Mobility .

"The stock will be driven by the core business," he said. "The worries people have in the adjacencies…[There is] too much conversation on the noncore businesses and we should focus on what’s driving Google, which is core search. That will be the main driver on the stock and these other worries are sideshow worries."

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Disclosures:

Anthony DiClemente does not own shares but Barclays Capital has provided investment banking services for Google.

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