Google Inc announced a 23 percent revenue increase in 1Q on a rebound in online advertising. However, its stock price fell 5 percent to US$565.50 on Thursday, after a 5 percent growth since Monday. It looks like there's still a long way for the company to go before it sees its stock prices return to pre-recession levels, The Associated Press reported in an article posted by the Washington Post.

"They've had a strong last few days ... and some investors expected Google to beat by a wider margin and price-per-click to come in a bit higher than 7 percent growth," Edward Jones analyst Andrew Miedler said.

Photo: AP Photo/Paul Sakuma

"They just weren't good enough," said Capital Advisors Vice President Channing Smith, Reuters reported.

Google is trying to maintain its rapid pace of growth, but analysts points out some challenges including the growing regulatory and legal headaches around the world, and its withdrawal from China.

Facing the growing competition from Apple Inc. in the mobile advertising market and people's concerns on its relative lack of success outside search, Google has pledged to keep investing heavily.

Google added nearly 800 workers in the first quarter, the most in two years, and, according to Chief Financial Officer Patrick Pichette, will keep recruiting throughout 2010, underscoring hopes of a continued rebound in growth of Internet advertising, the AP reported.

"We are pushing ahead with significant investments," Pichette said to analysts and investors.