What Happened?

Shares of restaurant technology platform Toast (NYSE: TOST) jumped 6% in the morning session after the company posted strong third-quarter results, beating revenue and profit expectations and raising its full-year profit forecast. 

The restaurant technology platform generated $1.63 billion in revenue, surpassing analyst forecasts by 3%. Its GAAP earnings per share of $0.16 also comfortably beat Wall Street's estimates. Furthermore, Toast provided an upbeat outlook, raising its full-year adjusted EBITDA guidance to a midpoint of $615 million, which was above consensus. While the company's annual recurring revenue was a notable miss, investors focused on the strong top- and bottom-line beats and the improved profit outlook, sending the shares higher.

Is now the time to buy Toast? Access our full analysis report here.

What Is The Market Telling Us

Toast’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 5% on the news that blockbuster quarterly results from tech titans Apple and Amazon boosted investor confidence, supported by impressive earnings from key cloud and crypto leaders, Cloudflare and Coinbase. 

Amazon's shares surged after reporting that its cloud computing division, Amazon Web Services (AWS), saw revenue jump 20% year-over-year to $33 billion. This accelerated growth is largely attributed to the high demand for computing power required for artificial intelligence applications. Apple also contributed to the positive sentiment, topping its own quarterly estimates and forecasting a record-breaking holiday quarter. The strong performance from these industry leaders has lifted the broader market. Impressive results from key cloud and crypto leaders, Cloudflare and Coinbase strongly supported the broader tech momentum. Cloudflare reported a "beat and raise" quarter with revenue soaring 30.7% year-over-year to $562 million and billings jumping nearly 40%, signaling strong future growth. Its non-GAAP operating margin expanded to 15.3%, and Free Cash Flow grew by nearly 60%, confirming management's efficient execution, leading the company to raise its full-year EPS guidance. Concurrently, Coinbase's third-quarter results also significantly topped estimates, driven by better-than-expected trading revenue and the increasing adoption of its stablecoin, USDC. The company reported $1.87 billion in revenue and an adjusted EPS of $1.44, while its strategic acquisition of Deribit advanced its "Everything Exchange" vision, resulting in over $840 billion in derivatives trading volume and aggressive expansion across the crypto market.

Toast is up 7.5% since the beginning of the year, but at $39.12 per share, it is still trading 20.7% below its 52-week high of $49.30 from August 2025. Investors who bought $1,000 worth of Toast’s shares at the IPO in September 2021 would now be looking at an investment worth $625.74.

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