Nov. 25 (Bloomberg) -- Google Inc., owner of the most popular Internet search engine, rose the most in a month in Nasdaq trading after Barclays Capital said spending on ads is increasing.

The shares are undervalued after falling 63 percent this year before today, analyst Doug Anmuth said in a report today. There are “early signs” from search-marketing firms that spending has risen in the past couple of weeks, he said.

“Google’s business model is fundamentally intact, and the company is well positioned to continue taking share of advertising dollars,” said Anmuth, who is based in New York. He expects Google to outperform other Internet stocks.

Google has slowed hiring as customers such as carmakers and banks pare budgets, striving to shield themselves from the economic slump. Last month, Barclays lowered its forecast for U.S. online ad spending to $24.8 billion, more than $1 billion less than first predicted.

Google, based in Mountain View, California, climbed $24.61, or 9.6 percent, to $282.05 at 4 p.m. New York time in Nasdaq Stock Market trading. The gain was the most since Oct. 28.

Google’s share of U.S. Internet searches increased to 63.1 percent last month from 62.9 percent in September, according to ComScore Inc. of Reston, Virginia. Yahoo! Inc. fielded 20.5 percent of the queries, up from 20.2 percent, and Microsoft Corp.’s share was steady at 8.5 percent, ComScore spokesman Andrew Lipsman confirmed in an e-mail.

To contact the reporter on this story: Crayton Harrison in New York at tharrison5@bloomberg.net

Last Updated: November 25, 2008 16:12 EST