The Chicago company said on the call that growth would not be as strong as anticipated.
Grub Hub forecast fourth-quarter revenue between $315 million and $335 million. Analysts were forecasting $422.2 million.
The company told analysts that its "growth had deviated noticeably from where we thought it was going to be," prompting them to slash their average price target to $76 from $87, according to Bloomberg.
Analysts at Oppenheimer said competition was eroding usage of Grubhub's services, and they expected this trend to continue. The firm slashed its price target to $34 from $91.
Meanwhile, Bank of America analysts cut their price target to $30 from $98. "The food-delivery market is increasingly irrational as competitors flood the market," analyst Nat Schindler said.
GrubHub's "answer to this irrationality, however, seems confusing: Its management letter seems to suggest that it will double down on its competitors' poor economic decisions," Schindler said.
Jefferies lowered its price target to $45 from $78 with a hold rating. Its primary concerns are Grubhub's reduced outlook as well as its plans to increase spending.
GrubHub "has turned into a revenue deceleration story with compressing margins all in the face of increased competition, not a great recipe for success," said analyst Brent Thill.
At last check GrubHub shares were trading down 42% to $33.62.