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Toast, Inc. (TOST) Price Target Cut at DA Davidson as Growth Expected to Normalize

We recently published an article titled 13 High Growth Cloud Stocks to Buy. 

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.

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 AI stock that is more promising than TOST and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 9 High Growth Canadian Stocks to Buy

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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