Investors Hungry for GrubHub?

Let’s talk about GrubHub (NYSE:GRUB).

If it’s not around you, it will be -- and it will change your life if you’re lazy. I’m just joking.

Here’s the thing. It’s one of these new companies that’s made a gigantic splash. They can execute, too. A lot of these new names, they have a sexy idea and great product, but they can’t execute.

They beat the Street in three of the last four quarters. In December, their earnings were 46% better than Wall Street anticipated. On Wednesday the volume was huge. It traded 3.5 million shares – normally it trades 1.6 million – it’s on the cusp of a major technical breakout. I think it’ll take the stock up to $50.

I also like that there’s a large short position against it. So if this picks up and it gets over $45, I think these shorts are going to be in a whole lot of trouble. I think you’re going to see more Wall Street firms get on top of it.

It reminds me of OpenTable. OpenTable was amazing. They were acquired for a big premium. I like this one a lot. I will say it is more volatile than your average stock.