Investment firm ValueAct recently more than doubled its stake in Toast stock.ValueAct Capital Management made a name for itself as one of the top hedge funds in the industry. The fund invests in a concentrated portfolio of stocks, with a focus on high-quality businesses that it thinks are being undervalued by the market. Something it looks for in particular are good businesses whose stocks look mispriced because of "perceived unfavorable industry conditions." While ValueAct establishing a large, new positio ...

Core Viewpoint - The SaaS sector is experiencing significant market cap losses, exceeding $800 billion in 2026, attributed to the perceived threat of AI, described metaphorically as a "black plague" [1]. Group 1: Market Impact - The SaaS industry has faced a dramatic decline in market capitalization, with losses surpassing $800 billion in 2026 [1]. Group 2: Investor Sentiment - There is a prevailing sense of panic among investors on the NYSE, indicating a broader market concern regarding the implications of AI on the SaaS sector [1].

Sometimes, the market offers opportunities to buy great stocks at a discount. That's happening now.What goes up can go down. We've seen that adage come true with quite a few stocks in recent months. But can what comes down also go back up? Absolutely, at least in some cases.Some of the sell-offs appear to be overdone. Here are three growth stocks down 30% (or more) to buy right now. 1. DoorDashLike millions of people around the world, you're probably already familiar with DoorDash (DASH +0.04%). The company ...

Toast Inc. (NYSE:TOST) is one of the best new tech stocks to invest in now. On February 12, Toast reported its 2025 earnings report, which was highlighted by a 33% increase in recurring gross profit and an expanded adjusted EBITDA margin of 34%. The company added more than 30,000 net locations to its platform, ending the year with a total of 164,000 locations and surpassing $2 billion in ARR. In Q4 alone, the company’s revenue totaled $1.6 billion, which was a 22.05% improvement year-over-year. Toast suc ...

Employee Engagement and Workforce - As of December 31, 2025, the company had approximately 6,500 employees worldwide[82] - The company is committed to maintaining high employee engagement and satisfaction, as assessed by annual internal culture and independent surveys[83] - The company offers competitive compensation and benefits, including healthcare, mental health support, and retirement savings plans[84] - The company is focused on creating a diverse and inclusive workforce, believing it to be a strategic enabler for business success[85] Intellectual Property and Legal Compliance - The company has 67 U.S. patent applications allowed/granted and 10 pending, with issued patents estimated to expire between 2034 and 2044[94] - The company has developed a strategy to protect its intellectual property, including a combination of patents, trade secrets, and trademarks[93] - The company is licensed as a money transmitter in most states for payroll processing services, subject to various federal and state regulations[101] - The company is subject to numerous federal and state privacy and information security laws, which impact its operations and consumer data handling[114] - The company is subject to the EU GDPR and other privacy laws as it expands internationally, which may impact its operations[118] Financial Position and Market Risks - As of December 31, 2025, the company had cash and cash equivalents of $1,353 million and marketable securities of $638 million[432] - A hypothetical 100 basis point increase or decrease in interest rates would not have materially affected the company's financial position[433] - The primary objective of the company's investment activities is to preserve capital and meet liquidity requirements without significantly increasing risk[432] - The company has maintained provisions for potential credit losses and evaluates customer solvency on an ongoing basis[435] - The effects of inflation on the company's results of operations and financial condition have been considered immaterial[436] - The company does not expect changes in prevailing interest rates to have a material impact on its results of operations[433] - The company is exposed to market risks including interest rate and foreign currency exchange risks in its operations across North America, Europe, and Asia[431] Social Responsibility and Community Engagement - The company announced a $5 million, five-year commitment to address global hunger and food insecurity, making grants to hunger-relief organizations[90] - The company has reserved a total of 5.5 million Class A common shares for charitable initiatives through its social impact arm, Toast.org[89] Customer Base and Revenue - The company has a diverse customer base, with no individual customer accounting for more than 10% of total revenue during the fiscal years ended December 31, 2025, 2024, and 2023[435] - Foreign currency transaction gains and losses have not been material to the company's results of operations, and no foreign currency hedging transactions have been engaged[434]

Core Insights - Toast reported solid fourth-quarter results, with a significant rebound in share price following an initial sell-off after earnings release [1] Group 1: Financial Performance - Total Q4 revenue increased by 22% to $1.63 billion, with subscription revenue rising by 28% to $256 million and financial technology revenue growing by 22% [2] - Annual recurring revenue (ARR) jumped by 26% to $2 billion, driven by a 2-basis-point increase in payment processing take rate to 48 basis points [3] - Earnings per share (EPS) rose from $0.05 a year ago to $0.16, while adjusted EBITDA soared 47% from $111 million to $163 million [4] Group 2: Future Guidance - For 2026, Toast forecasts subscription services and fintech gross profit to be between $2.27 billion and $2.30 billion, indicating 20% to 22% growth, with adjusted EBITDA expected to be between $775 million and $795 million [4] - For Q1, the company projects subscription services and fintech gross profit of $505 million to $515 million, equating to 22%-24% growth, with adjusted EBITDA anticipated in the range of $160 million to $170 million [5] Group 3: Market Position and Growth Opportunities - Toast added approximately 8,000 new net restaurants in the quarter, a 22% year-over-year increase, totaling around 164,000 locations, with notable traction in international markets and food and beverage retailers [2] - The company sees opportunities for growth beyond its core small U.S. restaurant customer base and is embracing AI tools as a future growth driver [8]

Company Overview - Toast, Inc. (NYSE:TOST) is a significant player in the restaurant technology sector, providing point-of-sale and management systems to enhance operations for food service businesses [1] Price Target and Institutional Interest - Harshita Rawat from Bernstein has set a price target of $39 for TOST, indicating a potential upside of 42.7% from its current price of $27.33 [2][6] - ABN Amro Investment Solutions has increased its stake in Toast by 14.6%, now holding 157,430 shares valued at approximately $5.7 million, reflecting growing institutional interest [2][6] Additional Institutional Investments - Other institutional investors, including Quent Capital LLC, RiverPark Advisors LLC, and Alpine Bank Wealth Management, have acquired new positions in TOST, each valued at around $30,000, indicating increasing confidence in the company [3] - Wolff Wiese Magana LLC has also taken a new stake in TOST, further demonstrating the rising interest among investors [3] Stock Performance - The current stock price of TOST is $27.33, reflecting a 4.55% increase or $1.19, with fluctuations between $26.71 and $28.50 throughout the day [4] - Over the past year, TOST has experienced a high of $49.66 and a low of $25.91, showcasing its market volatility [4] Market Capitalization and Trading Volume - Toast's market capitalization is approximately $16.1 billion, with a trading volume of 31.3 million shares today, highlighting the company's significant presence in the restaurant technology sector [5]

Core Viewpoint - Toast, Inc. has received positive attention from analysts and institutional investors, indicating a bullish outlook on its stock performance and growth potential [1][2][6]. Group 1: Analyst Upgrades - Bernstein upgraded Toast's stock from Market Perform to Outperform, with the stock priced at $27.33 during this upgrade, reflecting a positive sentiment towards the company's future [1][6]. Group 2: Institutional Investment - ABN Amro Investment Solutions increased its investment in Toast by 14.6%, now holding 157,430 shares valued at approximately $5.7 million, showcasing confidence in the company's growth potential [2]. - Other institutional investors, including Quent Capital LLC, RiverPark Advisors LLC, and Alpine Bank Wealth Management, have acquired new positions in Toast, with investments ranging from $27,000 to $30,000, indicating a growing institutional interest [3][6]. Group 3: Stock Performance - Toast's stock price is currently $27.33, marking a 4.55% increase or $1.19 rise, with fluctuations between a low of $26.71 and a high of $28.50 today [4]. - Over the past year, Toast's stock has experienced a high of $49.66 and a low of $25.91, indicating some volatility in its market performance [4]. - The company's market capitalization stands at approximately $16.1 billion, highlighting its significant presence in the market, with a trading volume of 31.3 million shares today [5].

Core Insights - Toast, Inc. has seen significant changes in institutional ownership, with several hedge funds increasing their stakes in the company, indicating strong institutional interest in TOST [1][4] - Analysts have mixed sentiments regarding Toast's stock, with several firms lowering their price targets while maintaining positive ratings, reflecting a cautious outlook on the company's performance [2][5] - The company reported Q4 revenue of $1.63 billion, a 22% year-over-year increase, but missed EPS expectations, which may affect short-term investor sentiment [5][8] Institutional Ownership - NewEdge Advisors LLC increased its holdings in Toast by 1,555.5% in Q1, now owning 17,432 shares valued at $578,000 after purchasing an additional 16,379 shares [1] - Vanguard Personalized Indexing Management LLC raised its stake by 12.1% in Q2, owning 32,966 shares worth $1,460,000 after buying 3,558 additional shares [1] - Envestnet Asset Management Inc. grew its position by 37.4% in Q3, owning 617,810 shares valued at $22,556,000 [4] Analyst Ratings and Price Targets - Wells Fargo cut its target price from $47.00 to $36.00 while maintaining an "overweight" rating [2] - Needham & Company LLC decreased its price target from $60.00 to $35.00 but kept a "buy" rating [2] - The consensus rating for Toast is "Moderate Buy" with a target price of $41.18 according to MarketBeat.com [2] Financial Performance - Toast's Q4 revenue was $1.63 billion, slightly above the consensus estimate of $1.62 billion, marking a 22% increase year-over-year [5][8] - The company reported an EPS of $0.16, missing the expected $0.24, which may negatively impact investor sentiment [5][8] - Toast's return on equity was 18.86% with a net margin of 5.56% for the quarter [8] Share Buyback and Market Sentiment - The board approved a share buyback plan, although no specific dollar amount was disclosed, indicating intent without immediate capital deployment details [5][9] - Analysts remain supportive of Toast's long-term growth potential despite recent price target cuts, suggesting continued institutional conviction [5]

Core Viewpoint - Toast Inc. (NYSE: TOST) is considered a promising low-cost stock, with recent price target adjustments reflecting a cautious yet optimistic outlook for the company and the broader FinTech sector [1][2][3]. Group 1: Analyst Ratings and Price Targets - Truist lowered the price target on Toast to $42 from $43 while maintaining a Buy rating, indicating confidence in the company's potential despite a challenging year-over-year comparison for Q4 2025 earnings [1][2]. - Evercore ISI upgraded Toast to Outperform from In Line with a price target of $40, citing a significant decline in its EV/EBITDA multiple by 44% since August, which suggests the stock is undervalued [3]. Group 2: Market Outlook and Company Position - The firm anticipates solid quarterly results for Toast but warns that difficult year-over-year comparisons may limit volume-driven performance [2]. - Looking ahead to 2026, Truist remains optimistic about the sector's recovery, although some management teams may provide conservative guidance to reset market expectations [2]. - Field checks support a positive long-term thesis for Toast, confirming its strong competitive position and inherent operating leverage [3]. Group 3: Company Overview - Toast Inc. operates a cloud-based digital technology platform specifically designed for the restaurant industry, with a presence in the US, Ireland, India, and other international markets [4].