Pinterest was added to RBC’s “Top 30 Global Ideas List”, Amazon was dropped by Investing.com

Investing.com — RBC Capital Markets announced a quarterly update to its “Top 30 Global Ideas List,” adding eight new stocks, including Pinterest Inc (NYSE: ), while it eliminated seven, one of which was Amazon (NASDAQ: ).

Pinterest’s inclusion comes amid strong growth potential for the social media company, driven by increased ad relevance and conversion through initiatives such as direct links and a partnership with third-party retail media.

These changes are expected to significantly improve return on ad spend (ROAS), with Pinterest stock poised for a potential upside revaluation as growth reaccelerates to around 20%. RBC notes that the company is not counting on expanding its US user base, as even its current users are seen as capable of driving more growth through better ad engagement.

“While it’s unclear whether these changes will be a tailwind for US monthly active users (MAUs), we believe the current user base is under-monetized to an extent where the company does not necessarily need to significantly grow US users to accelerate. increasing revenue and increasing margins.”

RBC set an Outperform rating on Pinterest stock with a $48 price target, representing a 48% upside from current levels.

In addition to Pinterest, several other stocks were added to RBC’s list this quarter, including American International Group (NYSE: ), Cameco (NYSE: ), Healthequity Inc (NASDAQ: ) and Zalando SE (ETR:).

At the same time, Amazon, along with other notable names like Chubb (NYSE: ) and Biogen (NASDAQ: ), was removed from the list.

Amazon shares fell 6.8% in Q3 2024, underperforming RBC’s broader Top 30 list, which delivered a total return of 7.8% during the quarter.

RBC analysts, however, continue to see long-term value in Amazon, particularly in its AWS division, even though it has been spun off in favor of ideas with higher convictions.

American Homes (NYSE:) 4 Rent, Marks and Spencer Group PLC (LON:), Restaurant Brands (NYSE:) and S&P Global Inc (NYSE:) were also removed.