Jim Cramer: Why Investors Should Be Cautious With GrubHub (GRUB) IPO

NEW YORK (TheStreet) -- GrubHub  (GRUB) began its first day of trading Friday after its IPO. TheStreet's Jim Cramer says the online food delivery service, which also owns Seamless and MenuPages, is profitable, unlike other IPOs from the early 2000s such as Webvan, which had "nothing behind it."

Cramer thinks the stock is up because people like the service and want to buy the company; he preaches caution, though, because the stock is not cheap.

GrubHub traded at $36.45 at 12:26 p.m.

Must Watch: Jim Cramer: GrubHub IPO Investors Proceed With Caution

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

GRUB Chart

GRUB data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers