Does Toast (TOST) Have Profitable Growth Potential?

2 hours ago 2

Soumya Eswaran

Fri, December 26, 2025 astatine 7:05 AM CST 2 min read

Harbor Capital Appreciation Fund, an concern absorption company, released its Q3 2025 capitalist letter. A transcript of the aforesaid tin be downloaded here. The Harbor Capital Appreciation Fund chiefly focuses connected investing successful equity securities, targeting U.S. companies that person a marketplace capitalization of astatine slightest $1 cardinal astatine the clip of investment. US equities delivered coagulated results successful the 3rd quarter, driven by continued momentum successful AI and beardown firm earnings. The Federal Reserve’s involvement complaint chopped besides supported the marketplace astatine the extremity of the quarter. The money returned 5.11% successful the 4th compared to 10.51% for the Russell 1000® Growth Index and 8.12% for the S&P 500 Index. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Harbor Capital Appreciation Fund highlighted stocks specified arsenic Toast, Inc. (NYSE:TOST). Toast, Inc. (NYSE:TOST) is simply a cloud-based integer exertion level for the edifice industry. The one-month instrumentality for Toast, Inc. (NYSE:TOST) was 8.80%, and its shares mislaid 4.92% implicit the past 52 weeks. On December 24, 2025, Toast, Inc. (NYSE:TOST) banal closed astatine $36.49 per share, with a marketplace capitalization of $21.456 billion.

Harbor Capital Appreciation Fund stated the pursuing regarding Toast, Inc. (NYSE:TOST) successful its 3rd 4th 2025 capitalist letter:

"We initiated a presumption successful Toast, Inc. (NYSE:TOST), a person successful cloud-based edifice exertion serving a large, under-penetrated market. Toast provides an integrated level for point-of-sale, payments, operations, and impermanent engagement, helping restaurants amended efficiency, streamline workflows, and heighten the lawsuit experience. Expansion into endeavor and planetary markets, on with a beardown recurring gross model, presumption Toast for profitable maturation potential."

Toast Inc. (TOST) Declines 7.1% connected Broader Market Downturn

Toast, Inc. (NYSE:TOST) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 56 hedge money portfolios held Toast, Inc. (NYSE:TOST) astatine the extremity of the 3rd quarter, compared to 67 successful the erstwhile quarter. While we admit the imaginable of Toast, Inc. (NYSE:TOST) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

In another article, we covered Toast, Inc. (NYSE:TOST) and shared the database of astir promising fintech stocks to put in. In addition, delight cheque retired our hedge money capitalist letters Q3 2025 page for much capitalist letters from hedge funds and different starring investors.