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

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GRUB Chart

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

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