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Yes, Google blew through estimates for its Q3 profits and revenue growth. Yes, its conference call was full of evidence that its momentum isn't waining. But the most important line in its conference call was this:

First the context. Larry Page is discussing Google's advertiser base. He describes how Google is increasing its penetration of the top 100 advertisers and increasing its focus on smaller advertisers, for example by partnering with Intuit (INTU) and coupon company Valpak.

And then he says this:

Over half of local businesses don't have websites yet, based on the estimates we see, and our local business center helps those businesses easily create a web presence so they can advertise online.

Think about it. Google wants there to be more web sites because more websites means more advertisers and also more sites to search. More advertisers, more websites, more searches -- and Google dominates online advertising and search.

This is proof that Google is the ultimate Internet business, the ultimate long tail business. The more web sites there are, the better for Google. And Google scales with the growth of the Internet, because its customer interactions are automated.

Simple, but more important than anything else when you're thinking about Internet stocks.

Ask yourself if this applies also to Amazon.com, Inc. (AMZN), CNET Networks, Inc. (CNET), IAC/InterActive Corp. (IACI) or Yahoo! (YHOO). I don't think it does.

The transcript of Google's full conference call is here.

Source: The Most Important Quote From Google's Conference Call