Maybe Not Phenomenal, But At Least It's Pretty Good

Silicon Valley’s unemployment rate is still double digits, but at least one company is coming out of the recession in stellar fashion. Google’s revenue and net income for the last quarter were $6 billion and $1.6 billion, respectively, both all-time highs for the Mountain View company.

Google is gearing up for even better days, a shift that will involve hiring a couple thousand new employees after paring its payroll in each of the past two quarters. The Mountain View, Calif.-based company also intends to increase spending on computers and acquisitions of mostly small technology startups. Money won't be a problem, given that Google ended September with $22 billion in cash.
"There is a real wind of optimism and a real wind of confidence around here right now," Patrick Pichette, Google's chief financial officer, said in a Thursday interview.

I was one of the many skeptics who had no clue as to what Google was up to. I never click on pop-up ads and had no appreciation of the value of Internet search.

I also thought that its leadership position in Internet search was a one-trick pony that couldn't be leveraged into other areas. Google's forays into video, operating systems, browsers, and cell-phones have met with favorable critical reception. Even now it's difficult to discern the path to riches in these areas, but the Google guys, like Steve Jobs, seem to see trends and connections that no one else does. Although future profitability in non-search businesses isn't assured, I wouldn't bet against them.
[Disclosure: I bought Google over a year ago in the high-$400's, rode the stock down below $300, and am now enjoying a modest profit. I'm content to hold, but I'm not buying more.]