I'm very surprised. Google was up 7% today. Investors are not supposed to like surprises. You'd think the market would be spooked even though the short-term news is favorable. A whole day of trading has passed and the stock ended the day up sharply. What happened?

I don't think you can just say the market is "wrong." The market has had more than enough time to digest this information and register any post-reaction.

I think, more likely, that it has to do with characteristics of the subset of people investing in Google. These people are probably less risk averse than the average investor. They drove up the price of Google stock following a rocky IPO registration process. Now, following a sketchy turnaround, they're rewarding the stock and then some.

I have no idea how many shareholders Google has versus how many, say, IBM or GE has, but the risk-friendly investors of Google may simply be buying more of it. The stock price of a more mainstream company would probably not have performed the same way.

It will be interesting to see what happens with Google's subsequent quarterly announcements.