Amazon Exits Google Shopping Ad Auctions: Strategic Shift and Valuation Insights

Amazon has halted its spending on Google Shopping ads, marking a strategic shift in its advertising approach. Analysts' one-year average price target for Amazon is $252.43, suggesting a potential upside of 9.74%, while GuruFocus estimates a one-year GF Value of $189.47, indicating a potential downside of 17.63%. Amazon's strong presence in analyst circles with a 1.7 rating signifies an "Outperform" status.

Amazon (NASDAQ: AMZN) has withdrawn its spending on Google Shopping ads, marking a strategic shift in its advertising strategy. According to a report by Digiday [1], citing multiple research analytics firms, Amazon has ceased its expenditure on Google Shopping ads, a move that reflects a significant change in its advertising approach on Google's platform.

The decision comes amidst a broader shift in Amazon's advertising strategy, as the company looks to optimize its ad spend and explore alternative channels. This strategic move is part of Amazon's ongoing efforts to diversify its advertising portfolio and potentially reduce dependency on third-party platforms like Google Shopping.

Analysts have provided varying insights into the implications of this shift. According to GuruFocus, the one-year GF Value for Amazon is estimated at $189.47, indicating a potential downside of 17.63% from the current trading price of $230.02 [2]. The average price target for Amazon, as per 67 analysts, stands at $252.43, suggesting a potential upside of 9.74% [2]. This average target price ranges from a high of $305.00 to a low of $195.00.

The stock maintains a strong presence in analyst circles, with 73 brokerage firms providing an average recommendation of 1.7, signifying an "Outperform" status [2]. This rating is based on a scale where 1 represents a Strong Buy and 5 denotes a Sell rating.

Institutional investors have also been active in their positions in Amazon. GF Fund Management CO. LTD. grew its holdings in Amazon by 12.0% in the first quarter, owning 1,192,024 shares [3]. Other notable investors, such as Norges Bank and GAMMA Investing LLC, have also made significant changes to their positions in Amazon [3].

Amazon's recent earnings report highlighted strong financial performance, with earnings per share (EPS) of $1.59, beating analysts' consensus estimates by $0.21 [3]. The company reported revenue of $155.67 billion, up 8.6% year-over-year. The net margin stood at 10.14%, and the return on equity was 24.14%.

Several equities research analysts have weighed in on Amazon's stock. Deutsche Bank Aktiengesellschaft raised its price objective to $266.00, while BMO Capital Markets increased its target to $270.00 and gave the company an "outperform" rating [3].

As Amazon navigates changes in its advertising strategy and market dynamics, investors should consider these insights and analyses to make informed decisions regarding their portfolios. The company's strategic shift in advertising spending and strong financial performance highlight the need for continuous evaluation and adaptation in investment strategies.

References:
[1] https://seekingalpha.com/news/4474402-amazon-stops-spending-on-google-shopping-ads---report
[2] https://www.gurufocus.com/news/3017786/amazon-amzn-exits-google-shopping-ad-auctions
[3] https://www.marketbeat.com/instant-alerts/filing-gf-fund-management-co-ltd-boosts-holdings-in-amazoncom-inc-nasdaqamzn-2025-07-30/