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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A large Plains Exploratin & Production (NYSE:PXP) shareholder expressed concerns over the company's lack of a strategic plan for its proposed merger with Pogo Producing Company (NYSE:PPP), according to a Schedule 13D filing with the SEC. Shareholders are hoping that this larger player can help the company formulate a plan to unlock shareholder value.

Sandell Asset Management, which owns a 5.1 percent stake in the Houston-based company, said in a letter to the board that it supports the transaction but would like to see a strategic plan put in place for the company post-closing. The hedge fund urged a number of actions, including asset sales, MLP creations and aggressive share repurchases.

"As you probably know based on our recent meetings and conference calls, while we are inclined to support the Pogo transaction, we are concerned by your inability to provide a concrete plan for the combined company post-closing," Thomas Sandell said in a letter to the board.

To remedy this, Sandell wants to see the hedge fund sell oil reserves and use the proceeds to fund share repurchases. Simultaneously, the hedge fund wants to see the company form a master limited partnership for all of its reserves in California and the Piceance basin. Combined, these efforts would unlock millions in value for shareholders.

"We are confident that undertaking [these actions] will result in dramatic value creation for all shareholders of up to $90 per share (+80%)," said Thomas Sandell. "We believe the market unnecessarily discounts PXP’s value by using unrealistically low commodity price assumptions and giving little credit for unproved and non-core assets."

In the end, this is all great news for shareholders. Shares of PXP have seen very modest appreciation given the price of oil and shareholders are ready for a change. The lack of planning surrounding the acquisition of PPP has caused the share price to plummet and create buying opportunities for enterprising investors. Combined, these factors make PXP a stock worth watching!

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Delta Air Lines (NYSE:DAL) caught many investors and analysts offguard today after chief executive Richard Anderson hinted that the company may be interested in pursuing some deals during an earnings conference call earlier this week. The news caused widespread speculation on possible targets.

Anderson commented that consolidation "could make sense for Delta if it's done thoughtfully from a position of strength". The executive also made it clear that Delta "wants to be in control" as an acquirer as opposed to an acquisition target itself. The comments caught many by surprise given rising energy prices and pressure within the industry to increase profitability.

Interestingly, Delta recently emerged from bankruptcy itself after resisting a hostile takeover bid from US Airways Group. Many had speculated that Delta would sell itself during the bankruptcy process to settle with debtors; however, the airliner surprised many by emerging as an independent company.

Airline mergers are a traditionally difficult thing to make happen, but many industry analysts believe that Northwest Airlines may be the most likely target. Others suggest that the company may look into a more niche airline like JetBlue or Alaska Air Group. Smaller niche airlines may enhance certain routes, but larger acquisitions would offer more flexibility when it comes to supplier negotiations and leveraging economies of scale.

In the end, all of this speculation is just talk as of right now. However, any acquisitions in the airline industry would certainly make for an interesting strategy on behalf of Delta given its position. Combined, these factors make DAL a stock worth watching!

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