Even Google ( GOOG) can't shake the tech blues. The Mountain View, Calif., search giant blew out second-quarter targets late Thursday, posting a 77% revenue jump and a sharp rise in earnings. Google once again stood head and shoulders above its big Internet peers Yahoo! ( YHOO) and eBay ( EBAY), both of which disappointed Wall Street with soft guidance. But Google shares failed to cash in on the company's strong performance, remaining flat Friday as the Nasdaq posted another decline. In part, that's a reaction to Google's eye-popping rise in its first two years. "Anybody realistic would have seen that the stock got ahead of itself," says Larry Haverty, of Gabelli Asset Management, which owns a small Google position among its $25 billion in assets under management, in an interview. But Friday's action also points to investors' unease with pricey tech stocks as their growth slows and the economy moves toward a possible recession. "Generally, investors do not want to own consumer Internet stocks going into a recession regardless of what they may have done last quarter," says Scott Devitt, an analyst with Stifel Nicolaus, who rates Google a buy, in an email. Even so, he adds, "Google will outperform other large caps in the sector going forward." That's very much CEO Eric Schmidt's take. On Thursday's earnings conference call, Schmidt argued that Google would benefit from an economic slowdown "by the fact that our performance is simply better than the other alternatives." Investors perceive tech stocks as especially risky heading into a recession in part because the stocks continue to fetch hefty price-to-earnings multiples. Those multiples are likely to be vulnerable as the Federal Reserve raises interest rates, making safer investments more lucrative. While shares of Google are up more than 350% since their August 2004 IPO, this year they have dropped 6.4%. That's just slightly better than the 8% decline in the Nasdaq Composite Index. On the other hand, Google has far outperformed its struggling peers Yahoo! and eBay, both of which have lost more than a third of their value this year. And tech's pain hasn't been limited to the Internet stocks. Shares of Dell ( DELL) plummeted 14% Friday after the computer maker reduced its earnings outlook for the second time in two months. Its shares have fallen more than 36% since the start of the year. Microsoft ( MSFT) is down about 9% this year because of worries about delays of its Vista upgrade to Windows and the company's plans to boost spending to catch up to Google in its search business. The company did rise 5% Friday after rolling out plans for $40 billion in share buybacks. Valuations aside, some tech watchers see the sector's biggest problem as waning growth -- an issue Google isn't facing, at least not to the same degree. "The premium that investors will pay for Google will not come from expectations of massive upside and analyst models changing dramatically," writes Safa Rashtchy, an analyst with Piper Jaffray who rates Google outperform, in a note to clients today. Rather, investors will rush to buy the stock because "a $10 billion revenue company can still grow sales and profits more than 75% year over year."