But unlike Microsoft, which tried to hammer the government the way it hammered the competition, Google went in not with both guns blazing but with no weapons at all. The whole time that Google was in the government's crosshairs, it simply talked and reasoned. It showed that the company has simply built a better mousetrap. That unlike Microsoft, which jammed Windows and its own browser down the throats of the world, Google had no such market power. Everyone was free to go to Microsoft's Bing or
for search, or a host of other companies for search. Plus, Google steered people to Google sites instead of competing travel and entertainment sites because its offerings were arguably superior.
The FTC agreed. It was convivial, helped by the fact that
boosted Google's case by trying to switch to its own maps app, and then having to switch back because of Google's superior performance.
Second, advertising, which had gotten weaker, could be getting stronger now, particularly given Google' gigantic European business. It's entirely possible that a headwind could turn out to be a tailwind this quarter.
Lastly, Google hasn't even tried to monetize or even lever its tremendous smartphone operating system. That's something that could be 2013's prospect, while at the same time it managed to shed the albatross that was the hardware portion of the Motorola Mobility acquisition.
Now we don't know how well Google is doing with mobile, but we do know that the apps it is offering on mobile, the ones blessed by the FTC, could lead to better revenue streams. We also know that
is blazing a path toward better mobile revenue, a path that Google could follow.
Normally, I would put Google in the penalty box for at least a quarter after that terrible miss. Now, instead, I think that the Washington-related decline may be just what you need to get back into the stock. I don't like it as much as I like Facebook, which I think is transitioning into a terrific mobile play. But these changes at Google within the time frame of the last quarterly report are too terrific to ignore, and the stock has become a buy-on-weakness, not sell-on-strength, situation.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.