Google 3Q profit up 32 pct. on strength of online ads

SEATTLE (AP) — Google Inc.'s third-quarter earnings demonstrated that the Internet search leader is capable of surpassing investors' short-term expectations while still investing heavily in long-range projects.

Google reported a 32 percent jump in net income today and provided the most persuasive evidence yet that its past investments are paying off, helping it diversify away from search advertising.

Wall Street was encouraged, and sent Google's shares soaring 9 percent to $590.01 in extended trading after the release of results.

Text links placed above or alongside search results are still Google's main source of revenue, but the company has laid out billions to beef up its ability to sell image-based "display" ads, ads inside Web videos and on mobile phones. The company paid $3.2 billion for DoubleClick, a display ad network, and $681 million for mobile-ad firm AdMob.