Jim Cramer on Toast (TOST): "They've Got a Great Device, But You Know What, That's Not Enough"

Toast, Inc. (NYSE:TOST) is one of the stocks Jim Cramer looked at recently. When a club member expressed that they are in pain due to their position in the stock, Cramer commented:

Yeah, you know what, boy, that stock has just really come down. They’ve got a great device, but you know what, that’s not enough. And I’ve always been suspicious of it because I still think you can trade back and forth. It’s got a good device, but a device does not make a great stock.

Toast, Inc. (NYSE:TOST) provides a cloud-based technology platform that supports restaurant operations through point-of-sale, payroll, supply chain, and accounting solutions. Harbor Capital Appreciation Fund stated the following regarding Toast, Inc. (NYSE:TOST) in its third quarter 2025 investor letter:

We initiated a position in Toast, Inc. (NYSE:TOST), a leader in cloud-based restaurant technology serving a large, under-penetrated market. Toast provides an integrated platform for point-of-sale, payments, operations, and guest engagement, helping restaurants improve efficiency, streamline workflows, and enhance the customer experience. Expansion into enterprise and international markets, along with a strong recurring revenue model, position Toast for profitable growth potential.

While we acknowledge the potential of TOST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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