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

We recently published Bloodbath on the Street: These 10 Stocks Crashed Hard. Toast, Inc. (NYSE:TOST) is one of the worst-performing stocks on Wednesday.

Toast Inc. fell by 7.10 percent on Wednesday to finish at $41.50 apiece, tracking a broader market pessimism and shunning an investment firm’s bullish outlook on its stock.

On Wednesday, UBS maintained its “buy” recommendation and $47 price target for Toast, Inc. (NYSE:TOST) amid expectations of strong SaaS annual recurring revenues (ARR).

UBS underscored that ARR remains the most important metric for investors, especially as it continues to record a compounding growth rate of at least 30 percent.

In the first quarter of the year, Toast, Inc. (NYSE:TOST) achieved a net income of $56 million, reversing a $83 million net loss in the same period last year.

Revenues were higher by 24 percent to $1.3 billion from $1.07 billion year-on-year, primarily driven by its financial technology solutions and subscription services.

For the full year 2025, Toast, Inc. (NYSE:TOST) expects to book between $1.775 billion and $1.795 billion in revenues from its subscription services and financial technology solutions, or a 25 to 27 percent growth from the first quarter of 2024.

An aerial shot of a computer server station, highlighting the company’s focus on cloud-based technology.

For the second quarter alone, revenues from the same segment are expected to increase by 26 to 29 percent to a range of $435 million to $445 million.

While we acknowledge the potential of TOST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.