INSTANT VIEW: Google results beat expectations

SAN FRANCISCO (Reuters) - Google Inc on Thursday posted fourth-quarter earnings, which beat Wall Street forecasts, as its Web search advertising business remained strong despite a bleak economy.

Shares traded slightly above the closing price.

Following is comment on the report.

COMMENTS:

RICHARD SICHEL, CHIEF INVESTMENT OFFICER, PHILADELPHIA TRUST CO

"On a day when Microsoft is laying people off Google is coming through with some good numbers. Operating earnings were stronger than expected. Sales were stronger than expected."

MARTIN PYYKKONEN, ANALYST, WUNDERLICH SECURITIES:

"It was, all things considered, very good numbers. The revenue number is not what it used to be, but in this market and uncertainty in advertising slowdown, 18 percent up I thought was very good.

"The other part of the equation of course is margins and EBITDA or non-GAAP operating margins of 38 percent is still holding pretty solid.

"In this market and relative to the numbers that are being put out -- and I would go so far as to say relative to the numbers that Yahoo probably will put out next week -- these will look good and maybe I'll use the term 'as good as it gets' as far as Internet stock performance."

JASON AVILIO, ANALYST, KAUFMAN BROS

"The quarter was pretty solid in light of the broader economic perspective. Earnings were fine, revenues were fine. People didn't have high expectations... companies that are gaining market share, seeing secular growth will be fine. Unlikely there will be mass layoffs at Google. There is a lot of fat to trim operationally, but nothing like the thousands of layoffs at other tech companies."

YOUSSEF SQUALI, MANAGING DIRECTOR, JEFFERIES & CO

"Solid quarter. I expect them to reign in costs to protect margins, which is the right strategy right now. I hope (it shows the tech sector is still more resilient than other sectors), although it depends on the severity of the recession -- nobody is immune forever."

DEREK BROWN, ANALYST, CANTOR FITZGERALD, WHICH HAS BUY RATING ON GOOGLE AND MAKES A MARKET IN ITS SHARES

"Net revenue exceeded our expectations in large part because advertising on Google's proprietary sites was up 22 percent year-over-year, which topped our forecasts, and also because its traffic acquisition costs were lower than expected.

"It's clear that macroeconomic challenges continue to rob Google of growth, but it seems equally clear that the company continues to make headway in this market, and take share in this market, and seems to be adjusting reasonably well -- and certainly better than some had feared."

KEITH WIRTZ, PRESIDENT AND CHIEF INVESTMENT OFFICER, FIFTH THIRD ASSET MANAGEMENT, WHICH MANAGES $22 BILLION

"At least we have something to feel good about with this Google news in what has been shaping up to be a gloomy earnings period. It tells me that Google is very focused on their franchise and execution as a marketing, advertising and media company. It speaks highly to their business focus."

(Reporting by Jennifer Ablan, Anupreeta Das, Gina Keating and Sue Zeidler)