Media Go Easy on Google

In the tricky waters of the current economy, Google(GOOG Quote) reported an excellent quarter yesterday. But let's get something straight right from the start, because the business media did not with any degree of consistency: The fire-breathing search engine benefited from a good deal from cost-cutting.

Prominently mentioning its cost-cutting efforts accomplishes two separate things for you, the savvy investor. First, it cues you in on how well-managed Google is. Though some thought it incapable, it can tuck and trim with the best of them.

Mentioning cost-cutting prominently also lets you know that a portion of Google's excellent performance can't be repeated forever. There are, in the end, limits as to how much one can tuck and trim.

Reuters provided a lame example of how to handle the issue. There was no mention whatsoever of the cost-cutting side of the equation in its headline: " Google grows worldwide and beats forecasts; shares rise."

Nor in its lead: "Google Inc quarterly profit surpassed Wall Street forecasts, sending shares up more than 10 percent as the Internet search and advertising leader withstood deepening economic turmoil around the globe."

In fact, its first mention of the company going lighter on expenses fails to spell out what a contributor the restraint was to the bottom line. Here's the first mention: "Google added about 500 employees in the quarter, about half of them engineers, taking total staff to about 20,000, and the company said it would continue to hire cautiously."

And the puzzling line that comes after it: "But investors said Google appeared to be alone in its ability to weather the economic storm."