The rumor mill is churning strong around Google and two rumored deals.

Analysts at JP Morgan have released their 2008 investment guide for Internet stocks and say following outperformance in 2007 (Internet HOLDRs (HHH) +14% vs. S&P 500 +5%), they expect more of the same this year. Although revenue growth is seen decelerating to 21.2% from 25.6% last year, the analysts expect EPS growth of 34%, compared to only 8% for the S&P 500.