The EPS came better than expected, and the market reaction seems to be positive. The after hours trading quotes indicate that there may be a big gap up. If it crosses the recent highs and sustains at higher levels, then it could signal the start of another leg of the uptrend. The main reason for optimism is that the paid click volumes have increased sufficiently to make up for the declines in cost-per-click. So the declines may continue to be offset, and there could be an equilibrium point going forward. The increased usage of customers on mobile devices compared to PCs was expected, and the growth trend could continue for some time. However, the transition to mobile will require continuous adjustments due to the dynamic nature of the market. As pointed out by one on the analysts, the pace of growth has slowed down over the years, due to base effect, saturation etc., and that is one reason why Google is investing so heavily in new ventures to revive revenue growth. The Motorola Mobility venture has not been a success so far as the revenues have declined and the losses have increased. It is not going be easy, as the smartphone market is increasingly getting more crowded. Resale value is a selling point now, and Apple (AAPL) products score better on that. Usell (USEL) a company which provides a platform for selling used mobile phones and electronic devices, recently posted great growth in revenues. So Google's fundamentals may continue to catch up with the stock price, though the growth may not be that fast. Valuations may appear to be high, but the size and influence of Google, and its consistent performance makes it command a premium. There are worse stocks trading at much higher valuations purely based on promise.