Google Inc (NASDAQ:GOOG)’s earnings preview by Wedbush reveals that there is more upside, stirring some bullishness ahead of today’s earnings call.

A report published by the research firm made this revelation, and increased its price target to $740. This comes after analysts conducted revenue checks and factored in the overdone negative mobile sentiment. In addition, Wedbush updated its valuation to neutral. The research firm stated that they believe its revised Google Inc. (NASDAQ:GOOG) revenue estimates for 2013 towers above the Street’s.

Google Earnings

The report is very particular about the negative mobile sentiment that was brought about by the mobile cost-per-click drag. It argues that disgruntled investors may only need to see a few surprises to widen their scope beyond the drag.

Wedbush also makes mention of data on year-end retail paid search spending patterns. The research firm believes that the data, released by Adobe, earlier last week, and digital marketing tech company, Kenshoo, earlier in the month, has positive implications.

Adobe Systems Incorporated’s (NASDAQ:ADBE) data details a 7 percent year-over-year increase in average retail search. This 7 percent leap is a completed foil of mobile-induced dips reported by Google Business in recent quarters. In the same breadth, Kenshoo’s data revealed an 11 percent year-over-year leap in global retail paid search cost-per-clicks during the past shopping season.

This increase, coupled with a 23 percent year-over-year increase in clicks, led to a 36 percent year-over-year gain in paid search ad spending. Contrary to what most investors believe, Wedbush argues that expectations tied to mobile, paint a positive outlook. The research firm contends that the mobile sector is expected to contribute at least half of paid search growth in the U.K. Similarly, Wedbush points out that U.K growth has been trouncing Google Inc.’s (NASDAQ:GOOG) expectations in a recurrent fashion.

To top it off, Wedbush argues that mobile cost-per-clicks could mesh in with desktop more quickly for some segments where location-based data is valuable, for example restaurants. The research firm adds that if Google discloses such data, it could reverse investors’ negative sentiment on mobile’s impact on Google Inc (NASDAQ:GOOG) Business. While Wedbush’s top line estimates seem above the Street’s (based on higher growth assumptions), it reveals that its margin estimates are seemingly below the Street’s.

Near-term impact of Facebook minimal

Another notable aspect in the earnings preview is the skewed view at Facebook Inc (NASDAQ:FB). Although Wedbush see’s well-disposed investor sentiment in Facebook’s search and advertising initiative, it argues that the near-term impact of these initiatives is minimal, Wedbush adds that the resulting negative sentiment fuelled by Facebook’s seemingly huge near-term impact is overdone.