ValueAct Capital's Q4 Portfolio Adjustments Highlight Fintech Focus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
0mins
Should l Buy TOST?
Source: seekingalpha
- Portfolio Restructuring: ValueAct Capital significantly increased its investments in fintech during Q4, notably adding nearly 14 million shares of Rocket Companies to reach a total of 39,380,652 shares, indicating strong confidence in this sector.
- Restaurant Tech Investment: The firm also boosted its stake in restaurant technology platform Toast by 4,618,077 shares, bringing its total to 8,015,277 shares, highlighting its belief in the digital transformation potential of the food service industry.
- Emerging Investments: In Q4, ValueAct established new positions in BlackRock and Liberty Live Holdings with 695,000 shares and 1,799,319 shares respectively, demonstrating a strategic pursuit of diversification in its portfolio.
- Reduction Strategy: Conversely, ValueAct reduced its stake in Disney by 1,314,000 shares, leaving it with 3,077,931 shares, reflecting a cautious outlook on the traditional media sector's future.
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Analyst Views on TOST
Wall Street analysts forecast TOST stock price to rise
21 Analyst Rating
13 Buy
8 Hold
0 Sell
Moderate Buy
Current: 29.110
Low
36.00
Averages
47.00
High
60.00
Current: 29.110
Low
36.00
Averages
47.00
High
60.00
About TOST
Toast, Inc. is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. It provides a platform of software-as-a-service (SaaS) products and financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. It serves as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Its products include point-of-sale (POS) & restaurant operations, marketing, online ordering & delivery, team management, vendor management, retail, and financial technology solutions. Its in-store POS and restaurant operations offerings are built to help reduce time to take an order, optimize operations, and handle payments. Its marketing products provide integrated solutions to deliver targeted email and SMS campaigns, build loyalty programs, offer gift cards, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New CEO Appointment: Disney has announced that Josh D’Amaro, the current chairman of Disney Experiences, will officially succeed Bob Iger as CEO on March 18, which is expected to drive strategic execution during the company's transformation phase.
- Executive Departure: The company also revealed that Kristina Schake, senior executive vice president and chief communications officer, will depart after March 18, a move that may impact internal communications and brand image management.
- Toast Earnings Beat: Toast reported fourth-quarter earnings of 16 cents per share on February 12, exceeding the analyst consensus estimate of 13 cents, with quarterly sales of $1.633 billion also surpassing expectations of $1.620 billion, indicating strong market demand.
- ServiceNow's Strong Performance: ServiceNow reported approximately $3.57 billion in fourth-quarter revenue on January 28, beating the consensus estimate of $3.53 billion, with adjusted earnings of 92 cents per share, also above the analyst estimate of 88 cents, reflecting its ongoing growth potential.
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- Salesforce's Challenges: Salesforce is projected to generate approximately $41 billion in revenue for 2026, yet its annualized AI agent business is only $1.4 billion, and sluggish growth places it at risk of disruption, especially in an increasingly competitive market.
- Market Reaction: While the S&P 500 and NASDAQ saw slight gains last week, the software-as-a-service (SaaS) sector experienced sharp sell-offs, intensifying investor concerns about potential disruptions and reflecting market uncertainty about the industry's future.
- Investor Mindset: Analysts emphasized the importance of maintaining courage amid fear, asserting that investors must possess the ability to act against market trends to navigate volatility and seize potential investment opportunities.
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- MercadoLibre Growth Momentum: Currently, MercadoLibre's stock is down 34% from its all-time high, yet it achieved a 45% year-over-year revenue growth in Q4 2025, marking its 28th consecutive quarter of over 30% growth, demonstrating a strong business flywheel effect, and despite trading at its lowest price-to-sales ratio since the Great Recession, it is still seen as a prime investment opportunity.
- User Growth and Market Share: The fintech user base for MercadoLibre grew by 27% in Q4, reaching 78 million users, which propelled a 37% increase in gross merchandise volume on its platform, indicating that the synergy among its various business segments is strengthening, further solidifying its leadership position in the Latin American e-commerce market.
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- Market Competition and Valuation: Toast's stock has fallen nearly 50% from its highs, currently trading at 2.5 times sales; despite facing fierce market competition, management believes it has a path to achieving $10 billion in ARR, indicating an optimistic growth outlook in the restaurant industry.
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- Analyst Optimism: Analysts predict a 45% upside for DoorDash's stock, with 36 analysts rating it as either a strong buy or buy, indicating a positive outlook on its international business and grocery delivery growth potential.
- Strategic Importance of Deliveroo Investment: While the investment in Deliveroo is seen as a short-term burden, analysts believe it opens significant opportunities for DoorDash's international expansion in Europe, particularly in automation and new product development.
- Competitive Advantage: Xu emphasized DoorDash's edge in offering diverse choices, arguing that even with Amazon's competition, the ability to provide options from multiple independent retailers will sustain growth, and analysts are optimistic about its potential in restaurant reservations and personalized recommendations.
See More
ValueAct Capital Increases Stake in Toast
- Increased Stake in Toast: ValueAct Capital Management has more than doubled its position in restaurant software provider Toast, reflecting strong confidence in the company's growth potential, particularly amid ongoing platform innovations.
- Strong User Growth: Toast added 8,000 net locations in Q4, a 22% year-over-year increase, and 30,000 for the year, serving approximately 164,000 restaurants, indicating rising market penetration and customer demand.
- International Market Expansion: Toast is expanding into adjacent markets such as quick-service restaurants and hotels, and has begun gaining traction in international markets, further enhancing its growth outlook.
- Attractive Valuation: With projected annual recurring revenue (ARR) of $2.3 billion by 2026, Toast's enterprise value-to-ARR multiple is just over 6 times, highlighting the stock's investment appeal amid its sustained growth trajectory.
See More
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- Increased Stake: ValueAct Capital Management significantly increased its stake in Toast by more than doubling its position in Q4 2023, reflecting confidence in the company's growth potential despite its stock being affected by the recent SaaS sell-off.
- Strong Growth: Toast added 8,000 net locations in Q4, representing a 22% year-over-year increase, and 30,000 for the year, serving approximately 164,000 restaurants, indicating a sustained increase in market penetration within the restaurant industry.
- International Expansion: The company is expanding into adjacent markets such as quick-service restaurants, coffee shops, and hotels, and has started gaining traction in international markets, further enhancing its growth potential.
- Attractive Valuation: With a projected annual recurring revenue (ARR) of $2.3 billion by 2026, Toast's enterprise value-to-ARR multiple is just over 6 times, indicating an attractive valuation that makes it a compelling buy for investors.
See More
Disney Appoints New CEO and Earnings Highlights
- New CEO Appointment: Disney has announced that Josh D’Amaro, the current chairman of Disney Experiences, will officially succeed Bob Iger as CEO on March 18, which is expected to drive strategic execution during the company's transformation phase.
- Executive Departure: The company also revealed that Kristina Schake, senior executive vice president and chief communications officer, will depart after March 18, a move that may impact internal communications and brand image management.
- Toast Earnings Beat: Toast reported fourth-quarter earnings of 16 cents per share on February 12, exceeding the analyst consensus estimate of 13 cents, with quarterly sales of $1.633 billion also surpassing expectations of $1.620 billion, indicating strong market demand.
- ServiceNow's Strong Performance: ServiceNow reported approximately $3.57 billion in fourth-quarter revenue on January 28, beating the consensus estimate of $3.53 billion, with adjusted earnings of 92 cents per share, also above the analyst estimate of 88 cents, reflecting its ongoing growth potential.
See More
Software Sector Faces Disruption Risks
- Disruption Indicators: In a recent podcast, analysts discussed historical disruption cases, highlighting that persistently declining gross margins and customer attrition are key signs of companies facing disruption, which is crucial for investor decision-making.
- Salesforce's Challenges: Salesforce is projected to generate approximately $41 billion in revenue for 2026, yet its annualized AI agent business is only $1.4 billion, and sluggish growth places it at risk of disruption, especially in an increasingly competitive market.
- Market Reaction: While the S&P 500 and NASDAQ saw slight gains last week, the software-as-a-service (SaaS) sector experienced sharp sell-offs, intensifying investor concerns about potential disruptions and reflecting market uncertainty about the industry's future.
- Investor Mindset: Analysts emphasized the importance of maintaining courage amid fear, asserting that investors must possess the ability to act against market trends to navigate volatility and seize potential investment opportunities.
See More
Investment Insights: MercadoLibre and Toast as Growth Stocks
- MercadoLibre Growth Momentum: Currently, MercadoLibre's stock is down 34% from its all-time high, yet it achieved a 45% year-over-year revenue growth in Q4 2025, marking its 28th consecutive quarter of over 30% growth, demonstrating a strong business flywheel effect, and despite trading at its lowest price-to-sales ratio since the Great Recession, it is still seen as a prime investment opportunity.
- User Growth and Market Share: The fintech user base for MercadoLibre grew by 27% in Q4, reaching 78 million users, which propelled a 37% increase in gross merchandise volume on its platform, indicating that the synergy among its various business segments is strengthening, further solidifying its leadership position in the Latin American e-commerce market.
- Toast's Profit Potential: In Q4 2025, Toast's annual recurring revenue (ARR) hit $2 billion, growing 26% year-over-year, with its subscription software solutions boasting a gross margin of 70%, showcasing strong growth potential in the restaurant technology sector; although initial customer acquisition impacts profits, it is expected to convert into a long-term profitability advantage.
- Market Competition and Valuation: Toast's stock has fallen nearly 50% from its highs, currently trading at 2.5 times sales; despite facing fierce market competition, management believes it has a path to achieving $10 billion in ARR, indicating an optimistic growth outlook in the restaurant industry.
See More
DoorDash Stock Volatility Highlights Growth Potential
- Earnings Miss: DoorDash's fourth-quarter earnings fell short of expectations, causing shares to drop 12% in after-hours trading; however, CEO Tony Xu's optimistic outlook led to a 2% recovery in the following session, reflecting market confidence in the company's long-term growth.
- Analyst Optimism: Analysts predict a 45% upside for DoorDash's stock, with 36 analysts rating it as either a strong buy or buy, indicating a positive outlook on its international business and grocery delivery growth potential.
- Strategic Importance of Deliveroo Investment: While the investment in Deliveroo is seen as a short-term burden, analysts believe it opens significant opportunities for DoorDash's international expansion in Europe, particularly in automation and new product development.
- Competitive Advantage: Xu emphasized DoorDash's edge in offering diverse choices, arguing that even with Amazon's competition, the ability to provide options from multiple independent retailers will sustain growth, and analysts are optimistic about its potential in restaurant reservations and personalized recommendations.
See More
ValueAct Capital Increases Stake in Toast
- Increased Stake in Toast: ValueAct Capital Management has more than doubled its position in restaurant software provider Toast, reflecting strong confidence in the company's growth potential, particularly amid ongoing platform innovations.
- Strong User Growth: Toast added 8,000 net locations in Q4, a 22% year-over-year increase, and 30,000 for the year, serving approximately 164,000 restaurants, indicating rising market penetration and customer demand.
- International Market Expansion: Toast is expanding into adjacent markets such as quick-service restaurants and hotels, and has begun gaining traction in international markets, further enhancing its growth outlook.
- Attractive Valuation: With projected annual recurring revenue (ARR) of $2.3 billion by 2026, Toast's enterprise value-to-ARR multiple is just over 6 times, highlighting the stock's investment appeal amid its sustained growth trajectory.
See More
ValueAct Increases Stake in Toast Amid SaaS Sell-off
- Increased Stake: ValueAct Capital Management significantly increased its stake in Toast by more than doubling its position in Q4 2023, reflecting confidence in the company's growth potential despite its stock being affected by the recent SaaS sell-off.
- Strong Growth: Toast added 8,000 net locations in Q4, representing a 22% year-over-year increase, and 30,000 for the year, serving approximately 164,000 restaurants, indicating a sustained increase in market penetration within the restaurant industry.
- International Expansion: The company is expanding into adjacent markets such as quick-service restaurants, coffee shops, and hotels, and has started gaining traction in international markets, further enhancing its growth potential.
- Attractive Valuation: With a projected annual recurring revenue (ARR) of $2.3 billion by 2026, Toast's enterprise value-to-ARR multiple is just over 6 times, indicating an attractive valuation that makes it a compelling buy for investors.
See More
