Why has Ark Invest Been Buying Up a Lot of Toast Stock?

In this video, I will be talking about Toast stock, Cathie Wood' Ark Invest, the recent earnings report, comments from two analysts and explain why the stock is down. Is TOST stock a buy?
👉A portion of this video is sponsored by The Motley Fool.

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DISCLAIMER: I do not provide personal investment advice and I am not a qualified licensed investment advisor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read and/or view here. #toast #investing #stockmarket

[peternguyen]

I own Toast. As the restaurant industry picks back up Toast will continue to grow. Once restaurants go on Toast it is almost impossible to leave.

I think it’s very good to slowly add on shares under $14

[geolykos]

Sounds like an interesting business but Id use Arkk as a way to find stocks to avoid rather than buy. Their chances to buy a winning stock so far is less than 1/20

[tohnic]

Toast is fairly valued, assuming 40% future growth, profitability in 2 years, 5% operating margins long term. This is due to the massive number of outstanding shares which really dilute the equity per share. Toast will most likely continue to do well in the future, but at current prices there isnt much downside protection. I would like to see Toast penetrate into large restaurant chains rather than small-mid sized restaurants IMO. Large chains may already some sort of integrated POS in place, but none with as complete of a system as Toast.

Looking at customer reviews, i see many reports of underwhelming customer support, including reports of customer reps leaving the restaurant to set up the POS themselves and customer support who know nothing about the POS. Normally, i wouldn't care if its a consumer facing app, but if it's entire businesses that are complaining, churn will skyrocket. I would like to see how they will tackle this in the future.

[clayalanII]

10 months in :

SQ 1.81% YTD return
TOST 60.74% YTD return

[armstead]

Without watching the whole video, to answer your question, because they’re throwing darts at a dartboard?