Google Falls Below $600

Updated stock price NEW YORK (TheStreet) -- After a big year-long run, Google's (GOOG) stock ascent has taken a bit of a breather.

Google hit a 52-week high earlier this week, but the stock fell 3% Wednesday and was down another 2% Thursday on no particular news.

Are these ominous beginnings of a Google swoon? After the 94% gain for the stock last year, it's a reasonable concern.

Analysts like Merriman Curhan's Richard Fetyko say no, this may be the kind of reset that investors appreciate.

"All indications I'm getting is that search-ad spending was very strong in the fourth quarter," Fetyko wrote in an email.

In a note Thursday, Fetyko raised sales estimates 19% for Google's fourth quarter 2009. Citing strong search traffic growth and ad price increases, Fetyko now predicts that Google will report fourth quarter sales of $4.86 billion, which is up from his prior forecast of $4.77 billion.

Fetyko reiterated his buy rating and lofty $750-to-$800 price target on Google.