Google!

Google came through with an eye popping results today. I don't really care whether the market poses high risk environment for investment right now. However, it is very clear that the company is firing on all cylinders and the game is still fresh. The biggest loser in this foray is Yahoo and MSN.

Today, Google reported non-GAAP earnings of $3.68 and blew past analyst estimates. The bullish statements from CEO Schmidt that "they are strong in their core business which is driving the growth and that it is still early in their growth cycle" says a whole lot about Google's potential.

Google had a lot of negative press lately with a lot of pundits questioning its growth potential to copyright law suits pending against You Tube. But none of these are material to the company's quest to become the largest media company in the world. Yes, that is what they are striving to become. They want to be able to control and monetize content, and they are kicking butt doing it.

It should be also noted that at the current AH quote of $486.80 up over 3%, still represents a significant discount to Yahoo or BIDU. As such Goldman Sachs upgraded this stock with price target of $620. For those who doubt whether Google can continue to grow in the near and long term, just remember that they have produced this stellar result based solely on their core search ad business. They have yet to fully tap the potential of You Tube, advertising initiatives in Radio and Print media (which should become material in late '07 or early'08) remains exciting.

I believe Microsoft and Yahoo better watch out because they are losing market shares in all aspects that they strive to compete in.

I am long on Google with call position in May $500, $470 contracts.