Google's next act could be taking on Amazon, Baird says

The Google search application is seen running on an iPhone on September 5, 2018.
Jaap Jurriens | NurPhoto | Getty Images

Investors don't realize that Google is an e-commerce giant that can compete with Amazon, according to analysts at Baird.

The firm said in a note Thursday that Google already facilitates about one-third of e-commerce sales and is poised to grow that in the coming years.

"We believe Google is becoming a quasi-marketplace for brands/sellers that seeks to balance their exposure to Amazon and other marketplaces with having more control over the customer experience," Baird said in the note.