Google Gets Hot Again

Google also introduced new changes to the way it ranks display ads and the rates it charges to advertising during the quarter. As part of the change, advertisers will now have to pay the highest amount they bid for an ad. Previously, advertisers would get a refund for the amount between what it took to win an ad auction and their bid.

The move is widely expected to boost the amount Google makes on search. And with a continually growing market share, the reach that Google can bring to advertisers continues to increase when compared to rivals. That means there could be yet more ways to boost rates down the line.

"We continue to believe Google maintains a lot of flexibility with regard to monetization and continue to see expansion internationally as a tremendous source of upside for the company," Thomas Weisel analyst Christa Quarles wrote in a research note last week. Thomas Weisel makes a market in Google shares.

Still, while investors are expecting great things from Google's search business, they'll also be listening carefully to the company's strategy to move into new arenas. Given that the company is expected to grow its already massive earnings at clip of 30% annually over the next five years, Google will have to look well beyond search to live up to forecasts.