Google's Goals Span Globe

That trend is certainly reflected in Google's share price, which has more than doubled this year. For now, Google is defying skeptics who argue that the company's growth rates are not sustainable and that it's too dependent on the advertising market. Indeed, the company's moves outside of search also have yielded mixed results. Some advertisers also have criticized Google for rushing the release of a beta version of its Google Base listings service.

"What we have maintained since we have held the stock is that Wall Street has been underestimating their earnings power," says Thornburg's Summers. "I think with a company like this that's growing, basically carving out a competitive footprint, you can put a 40 multiple on '07," he says, referring to Wall Street's favored price-to-earnings-estimates formula.

Though Google is not without fault, bulls argue that there are too many things going the company's way that can't be ignored. For example, even companies that don't sell products on the Internet are finding it valuable to advertise in search engines, says Michael Hayes, a vice president of Interpublic Group's (IPG Quote) Initiative Interactive, which provides Internet ad-buying and planning services.

"If you can place the ads where people are ready to buy, you are going to probably get better results," he says. "Being top of mind is very critical."

Advertisers also are getting smarter about how they buy search, and are finding that they don't necessarily have to pay top dollar to be listed first. They also are finding other ways to get their message across online, through methods such as Internet video.

That's still good news for Google, which in competition with rival Microsoft (MSFT Quote) is vying to partner with Time Warner's (TWX Quote) America Online unit. AOL is seen by advertisers as having the best selection of video online, a technology that is expected to gain in popularity. The companies are also improving their video search capabilities.

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