MOBILE EVOLUTION: Google's first-quarter earnings rose 16 percent to $3.3 billion as the Internet search leader made further progress in its effort to boost the prices for ads distributed to smartphones and tablet computers. That helped lift Google's earnings above analyst projections.

THE CHALLENGE: Marketers haven't been willing to pay as much for ads on mobiles devices because their display screens are smaller than those on personal computers. But Google's first-quarter numbers indicated the gap between mobile and PC ads is gradually narrowing.

OTHER POSITIVES: The losses in the Motorola Mobility division that Google bought last year for $12.4 billion are easing.

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