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Depressed Google Bounces On Analyst's Note

After weeks of getting pummeled, Google's share price rose the most in a month after Barclays Capital said spending on search ads was increasing.

Analyst Doug Anmuth said Google shares, which have fallen 63% this year, were undervalued, and that "early signs" from search marketing firms indicate that spending has risen significantly in the past couple of weeks. "Google's business model is fundamentally intact, and the company is well positioned to continue taking share of advertising dollars," said Anmuth, who expects Google to outperform other Internet stocks.

Following his report, Google shares bounced $24.61, or 9.6%, to $282.05. That was the biggest gain for the stock since Oct. 28. The company's share of Web searches grew 0.2% last month, according to comScore, rising to 63.1%. Earlier in the week, Google announced that it would slow hiring, as advertising customers like carmakers and financial services firms cut back on their marketing budgets.

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