Editor's note: This article was updated to include actual results at the bottom of the first page.
NEW YORK (TheStreet) -- Yes -- buy.
Even before Google (GOOG - Get Report) announced its $2.91 billion sale of Motorola Mobility to Lenovo yesterday, Jan. 29, TheStreet's Marc Courtenay was calling Google "the best tech company" and said that this deal won't change his mind.
Google announced the purchase of Motorola for $12.5 billion in August, 2011, and sold out at a loss of almost $9.5 billion. How is that a good deal?
Because Google has already gotten what it wanted out of Motorola: about 17,000 patents, with about 10,000 devoted to mobile technology. Despite the fact that many were standards-essential patents that proved of little value in court, Google has been able to use those patents to fend off Apple's (AAPL) efforts to push its Android system out of the market. And Android now has most of that market.
Also, mobile devices are a horrible business for companies not named Apple. I recently bought a Moto G phone, made in China but unlocked for use on any network, for just $199. A U.S.-assembled Moto X was priced at $399. Unlocked Apple 5c phones sell at Amazon (AMZN) for over $550.
Here is another reason why Google made a good deal. When the company announces its earnings later today, the number I will look at is its capital expenditure.
Despite reporting a fine third quarter of 2013, with net income of $2.97 billion against $3.23 billion in the previous quarter, Google spent $2.29 billion in capital during the third quarter. It dramatically increased the capacity of its U.S. data centers and built new data centers in Belgium, Singapore and Taiwan. It also has a new data center in the works in Chile and an expansion at a Finland data center.
Google capital spending for the fourth quarter came in at $2.26 billion, during a quarter where it had $16.858 billion in revenue and $3.376 billion, $10.08 per share, in net income.