Google Inc. (NDAQ:GOOG) shares rose to $650 today after the company reported strong earnings for yet another quarter, according to an 8-K filing with the SEC. Many analysts have now set price targets as high as $800 per share on the search giant. All of this commotion has many others wondering if it is sustainable...

Revenues at the search company rose 57 percent to $3 billion when costs of payments to traffic partners are subtracted. Meanwhile, the company announced that it had hired 2,100 new employees to bring their count up to almost 16,000 - most of its new hires being in Europe.

Many analysts remain bullish on the company despite the fact that there is likely to be at least a small recession during the next two quarters that should adversely affect earnings. The high end of the new ranges are $800 per share by Goldman Sachs and Credit Suisse while the low end is $690 by BMO Capital. It won't be along until some analysts start pegging the $1,000 point.

Many are banking on Google's new GPhone initiative as well as several other factors to help it weather the storm. However, it is important to note that online advertising still accounts for almost all of Google's revenues and may be very difficult to diversify away from easily. Another troubling trend is the fact that the company's expense growth is far exceeding revenue growth.

In the end, Google continues to be a strong company that is working to diversify its revenues away from just online advertising in order to give it a better chance at surviving a recession. It has done a great job of moving business internationally and is now making inroads to new products and services. Combined, these factors make GOOG a stock worth watching!

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