13 High Growth Cloud Stocks to Buy

9. Toast, Inc. (NYSE:TOST)

3-year Revenue Growth: 42.75%

Number of Hedge Fund Holders: 56

On February 2, DA Davidson analyst Peter Heckmann lowered the firm’s price target on Toast, Inc. (NYSE:TOST) to $36 from $42 while maintaining a Neutral rating ahead of the company’s fourth-quarter results. The firm expects Toast to modestly exceed both its own forecasts and broader consensus, though it anticipates that growth and margin expansion will be more measured than the elevated pace seen over the past four to six quarters. Despite this moderation, recurring Gross Payment Volume remains a key area of strength and could provide incremental upside.

Operationally, the company continues to demonstrate solid momentum. In the third quarter of 2025, Toast, Inc. (NYSE:TOST) surpassed $2 billion in annual recurring revenue for the first time, effectively doubling ARR in just two years, which highlights the scalability and resilience of its platform. The rollout of AI-driven products such as Toast IQ and Toast Advertising has seen strong early adoption, with more than 25,000 restaurants using Toast IQ over 235,000 times since early October, reinforcing engagement across its customer base.

Toast, Inc. (NYSE:TOST) is a Boston-based cloud software provider focused on the restaurant industry, offering an integrated point-of-sale and management platform built on Android. Founded in 2011, the company has increasingly positioned itself as a technology partner rather than just a payments provider, and its expanding suite of software, payments, and AI tools supports a long-term growth narrative even as near-term expectations normalize.