INSTANT VIEW: Google earnings rally after beating estimates

SAN FRANCISCO (Reuters) - Google Inc posted a better-than-expected profit on Thursday, defying fears the company is facing an Internet advertising slowdown and prompting a surge in its share price in extended trade.

COMMENTARY:

PETER DUNAY, CHIEF INVESTMENT STRATEGIST AT BROKER-DEALER MERIDIAN EQUITY PARTNERS IN NEW YORK

"Google's ad and total revenues were very strong. Earnings beat analysts forecasts nicely. Its 'paid per clicks' were very good and rose by 20 percent. This signals that the online advertising market is still healthy which should help Yahoo get a better price for its company if it does decide to sell to Microsoft."

JEFF DONLON, SENIOR ANALYST, MANNING & NAPIER ADVISORS INC,FAIRPORT, NEW YORK. OWNS GOOGLE IN MANNING & NAPIER EQUITY FUND

"It looks pretty solid. I think the only thing that stands out for me on the negative side is the $842 million in capital expenditures. Cap ex has been high relative to the sales growth rate. The traffic acquisition cost rate looks low."

COLIN GILLIS, ANALYST WITH CANACCORD ADAMS

"It's a good time to be a Google bull. The boys delivered. They posted very strong results and the opportunities for Google remain tremendous internationally."

"$4.84 is a very healthy number, especially when consensus was at $4.52 and we were at $4.59."