Google shares jumped to an all-time high above $1,000 after the search engine giant reported a surge in mobile and video advertising that helped drive quarterly revenue up 23 percent. At least 16 brokerages raised their price targets on the stock to between $880 and $1,220, with Deutsche Bank bumping up its target price by 26 percent. The shares rose 13 percent to $1007.40 after the opening bell on the Nasdaq, before easing back a few dollars.

(Watch: Google's Q3 beat the Street)

Google said paid clicks increased by a quarter in the three months ended Sept. 30, from a year earlier, the highest rate of growth in the past year.

This offset an 8 percent fall in average cost-per-click, the price advertisers pay Google when consumers click on their ads. "We view solid paid clicks growth to be a good indicator of demand, driven by the continued shift to mobile,'' J.P. Morgan analysts said. They had expected 21.5 percent growth.

In contrast, analysts say Yahoo, which this week reported a tepid quarter, has lost market share in display and search advertising in the face of strong competition from Facebook and Google. Google shares have climbed 38 percent this year, rewarding investors such as Fidelity Investments' $101 billion Contrafund. Contrafund added to its stake in Google in the third quarter and got a big lift from the surging performance of Facebook and Tesla Motors as well. The fund, managed by star stock picker Will Danoff, returned 8.94 percent in the third quarter, easily beating the 5.24 percent advance of the S&P 500 Index. Facebook is expected to report its third-quarter results on Oct. 30. (Read more: Don't sell Google on earnings pop, trader says)