Shares of the world's No. 1 search company rose more than 14 percent to an all-time high of USD 1,015.46, swelling its market value by about $40 billion.

That vaulted Google past Microsoft Corp (MSFT.O) and Berkshire Hathaway Inc (BRKa.N) in capitalization and brought it to No. 3 among U.S. companies, behind only Apple Inc (AAPL.O) and Exxon Mobil Corp (XOM.N).

Google, whose Android is the world's most-used mobile software and YouTube is the most popular video-streaming service, on Thursday reported a 23 percent jump in net revenue from its Internet business. Advertising volume soared 26 percent - the highest rate of growth in the past year - and more than made up for an 8 percent slide in ad prices.

But given concerns about how US companies can increase revenue in an uncertain global economy, those numbers suggested Google was firing on all cylinders except for its perennially money-losing Motorola unit, analysts said.

"Google's ownership of the Android ecosystem makes Google like the house, in Vegas terms," said Stifel Nicolaus analyst Jordan Rohan. "The success of Android, which becomes more and more popular every day, is starting to really add up, and Google is collecting small tolls along the way."

Rohan said accelerating revenue growth outside the United States and the UK was impressive, particularly in South Korea and Japan. "That could go on a while," he said.

At least 16 brokerages raised their price targets on the stock to between USD 880 and USD 1,220. The shares were up 13.7 percent, or USD 121.82, at USD 1010.62 on Nasdaq at mid-afternoon.

"We view solid paid clicks growth to be a good indicator of demand, driven by the continued shift to mobile," JPMorgan analysts said. They had expected 21.5 percent growth in ad volumes.

 (Agencies)

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