Google R&D Pays Dividends

Solid Q2 performance reflects improvements and reassures investors, but analysts still worry that the Web search leader is a one-trick pony

Two days after Yahoo! (YHOO) stunned Wall Street with disappointing second-quarter results, leading to a 21% plunge in its stock price, chief rival Google (GOOG) on Thursday assuaged investors with its own financial results. The key difference: While Yahoo pushed back the timetable for its new-and-improved search-advertising system well into 2007, Google continues to enhance the way it selects and displays ads "every day, every quarter," according to Chief Financial Officer George Reyes.

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