GOOG Upgraded From ‘Overweight’ to ‘Morbidly Obese’

The Nasdaq started off the new year much as it ended the last–flaccid and frail.

The tech-heavy index fell 33 points to 2,619, a two-week low. This despite the release of a report from JPMorgan today that offered a very bullish tech sector outlook for 2008.

While the research outfit predicts revenue growth for the overall Internet sector to decelerate to 21.2% this year from 25.6% last year, it says we can expect the earnings of the Internet companies it covers to grow by 34% in 2008. That’s more than four times faster than the S&P 500.

Among the biggest drivers of that growth: search. JPMorgan says worldwide search revenue will reach $30.5 billion this year, up from $26.2 billion last year. What’s more, it says it will go on to grow at an annual rate of 28% over the next four years, hitting $60 billion by 2011.

Looks like 2008 is going to be quite a year for Google. As will the years that follow.