Toast makes special machines and software that help restaurants work better. Some people think Toast is not doing well because they are spending a lot of money and not making enough. But Goldman Sachs, a big company that helps people with their money, says that Toast will start making more money in 2025 and the price of their shares will go up to $24. They think that Toast's machines and software are really good and many restaurants will want to use them. Some people still don't believe it and they bet that Toast's share price will go down, but Goldman Sachs says they are wrong and the market is not aware of how well Toast can do in the future. Read from source...
- The author does not provide any evidence or data to support their claims that Toast could reach profitability in 2025. They simply cite an analyst upgrade without explaining why the upgrade is credible or valid.
- The author uses vague and misleading terms such as "best in class software platform" without defining what they mean by those terms or how they measure them. This creates a false impression of superiority and quality that may not be backed by reality.
- The author ignores the negative aspects of Toast's performance, such as weaker ARPU and GPV trends, which are important indicators of the company's health and growth potential. They also fail to acknowledge the high short interest and elevated market uncertainty that may pose significant challenges for the stock in the near term.
- The author seems to have a positive bias towards Toast and its management team, as they do not question their strategies or decisions, nor provide any constructive criticism or suggestions for improvement. This may indicate a lack of objectivity and impartiality on the part of the author.
Toast Inc (TOST) could reach profitability by 2025, according to a recent upgrade by Goldman Sachs. The analyst cites the company's best-in-class software platform as a key factor in outpacing competitors for new restaurant wins. Despite investor sentiment remaining negative due to weaker ARPU and GPV trends, the analyst believes that these issues are well-known and already priced into the market. Additionally, short interest is elevated, which suggests that the market is not accounting for the expected improvement in profitability trends in 2024. Therefore, TOST could be a good investment opportunity for those willing to take on higher risk. However, there are also risks associated with investing in TOST, such as competition from other payment tech firms and potential regulatory changes that may impact the industry. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.