Choosing not to argue with inarguable success,analysts raised price targets en masse forGoogle (GOOG) Wednesday morning.

Led by firms such as American Technology Researchand Credit Suisse First Boston -- each of which raisedits target for Google's stock price to $275 --analysts decided it was safe to assume that thefast-growing Google is growing even faster thanexpected.

With Google's shares trading at $214.02 Wednesday,up 11.5% from their Tuesday close, prior arguments about whether Google wasoverpriced at its $85 offering price or even at thepre-IPO suggested price of $135 seem hopelesslyquaint, though they took place only a few months ago.Clearly, Google has delivered on expectations forgrowth, and then some. Despite Google management'swarning Tuesday evening that future results won'tnecessarily be this ducky, the estimates that lookedover-optimistic not so long ago look under-optimisticnow.

Among the other firms setting price targetseclipsing the priorStreet-high goal of $235 were Prudential,going from $200 to $260, and Goldman Sachs, going from$215 to $265.

While Google's fourth-quarter performance wasremarkable from nearly every angle, a few elementsstood out.

One was the search engine company's netadvertising revenue growth of 32% from the thirdquarter of 2004 to the fourth -- a performance thatexceeded Yahoo!'s estimated high-teens growth in itssearch advertising business over the same time period.

Also impressive was the fact that the cost to Google of its partnerships appears to befalling. That is, its traffic acquisition costs, or TAC -- themoney that Google pays to other companies for theprivilege of running advertising on their Web sites --amounted to 77% of the ad revenue reaped from thosesites in the fourth quarter, reports CSFB. That's downfrom TAC that was 85% of so-called Google Networkrevenue in the corresponding quarter one year earlier.

The decline suggests that Google is getting moreof its revenue from smaller sites, with which it hasgreater bargaining power over TAC. It also runscounter to what appeared to have been an inexorabletrend in TAC -- that the sites on which advertisingruns have ultimate leverage over the companies thatsell advertising on their behalf.

Amid continual speculation about when the inevitable slowdown in search-advertising revenue growth will take place, the growth sped up for Google in the fourth quarter. Revenue from Google's own Web sites in the fourth quarter grew 118% from the year-earlier quarter, noted American Technology Research's Mark Mahaney, up from 99% year-over-year growth in the third quarter. Mahaney, who has a buy rating on Google, characterized as "jaw-dropping" Google management's comments about seeing no price resistance among advertising customers, and being constrained by a lack of advertising inventory (as opposed to being constrained by advertiser demand).

Analysts indicated that they believe Google isn't necessarily increasing its share of searches, but increasing the money it is generating from those searches. "We believe Google now has dedicated teams in place constantly 'tweaking' algorithms to eliminate underperforming ads," Lehman Brothers analyst Douglas Anmuth wrote in a note Wednesday. "In our view, Google first began improving monetization on the Google sites in the U.S. and has recently implemented the process on international Google sites and on the network. We believe improved monetization of the entire Google platform could continue to drive top-line growth."

Anmuth, who has an equal weight rating on Google, raised his target price on the stock from $190 to $230. Google has been a recent investment-banking client of Anmuth's firm.

More from Technology

These 5 Tech Giants Still Aren't That Expensive

These 5 Tech Giants Still Aren't That Expensive

Intel CEO Brian Krzanich's Ouster Proves CEOs Aren't Above the Rules

Intel CEO Brian Krzanich's Ouster Proves CEOs Aren't Above the Rules

Amazon, Microsoft and Google Face Backlash over ICE, Military Deals

Amazon, Microsoft and Google Face Backlash over ICE, Military Deals

As Intel Loses Its CEO, How Well Can It Compete Against Nvidia?

As Intel Loses Its CEO, How Well Can It Compete Against Nvidia?

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In