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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV