TOST Stock Recent News

Cathie Wood was a busy shopper on Monday. The co-founder, CEO, and ace stock picker at Ark Invest added to 13 different existing positions across her aggressive growth exchange-traded funds, her busiest day of purchases in weeks.

In this insightful video, analysts discuss the current challenges facing Toast (TOST -5.85%) stock amid rising food prices and economic uncertainties. While the company remains a favorite, investors must carefully evaluate the potential impacts on its business model and customer base.

Many investors have a preference for businesses generating strong revenue growth. This is a high-visibility metric that points to a clear product-market fit.

Growth stocks can help you multiply your savings over many years. Relatively small companies that are in the early stages of capturing their addressable market can be some of the most rewarding investments you ever make.

On Feb. 24, the world's largest pizza business, Domino's Pizza (DPZ -1.70%), reported its financial results for 2024. Investors were pleasantly surprised to see its sales surpass $19 billion, which was a strong 6% year-over-year increase.

IPO stock Toast made its debut on the New York Stock Exchange around four years ago.

I downgraded Toast to a “hold” after five consecutive “buy” ratings in my previous post due to a shrinking upside after a 120%+ gain, despite strong long-term growth prospects. Toast's Q4 FY24 earnings saw its revenue and Adjusted EBITDA grow 29% and 87% YoY respectively, while turning GAAP profitable as management continued to deliver on its strategic priorities. Management's FY25 guidance indicates slower growth, with 23-25% YoY gross profit growth and $520M Adjusted EBITDA, amid macroeconomic uncertainties and potential margin pressures.

Toast's stock has dropped ~20% from recent peaks in the mid-$40s, creating an opportune re-entry point. I'm upgrading the stock back to a buy rating. Though still not a cheap stock, Toast is now trading at a ~37x forward adjusted EBITDA multiple for ~40% expected EBITDA growth in FY25. Toast's Q4 revenue and ARR saw acceleration to a ~30% clip, despite a tough macro environment for restaurants.

When Block (XYZ -1.55%), which was formally known as Square, first introduced its credit card reader for mobile devices in 2009, it was a game changer. Businesses no longer needed anything special to adapt to the fast-changing payments space.

Toast (TOST) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.