Google Needs Something More Than Search

Google(GOOG) steps into its second-quarter earnings report later Thursday with a nice tailwind.

Shares of the search giant have gained about 15% since its last quarter's results and closed Wednesday at $549.50.

Still, the company -- which has topped evermore bullish analyst consensus estimates by at least 8% each prior quarter -- will face a high bar. Given its history, a solid financial performance from the search ad business that has made up almost all of the company's revenue to date is already built into expectations.

As a result, how the company is fairing in new key areas will take center stage.

For the second quarter, analysts surveyed by Thomson Financial/First Call forecast earnings of $3.59 a share on revenue of $2.68 billion.

Wall Street grew bullish on the stock over the quarter, with a slew of analysts raising price targets over the quarter. But while the stock now commands a median price target of $600, the company will likely have to show investors how it plans to seize on opportunities beyond its core search market before breaking through that mark.

The booming display ad market, which Google plans to storm via its recent $3.1 billion acquisition of DoubleClick, will be the company's next act. But the specifics of Google's strategy will be significant. The company has previously said that it remains undecided about linking user search and display data because of privacy concerns.

To watch Vishesh Kumar's video take of his column, click here.