Traders jumped on Waitr Holdings (NASDAQ:WTRH) after Amazon took a stake in Just Eat Takeaway.com's Grubhub business.

Shares of Waitr rose as much as 71% in morning trading before settling back to a 41% gain to $0.22. Traders appears to be assessing WTRH as a potential M&A or partnership target.

Waitr Holdings (WTRH) is still trading far below the 52-week high of $2.28 with the on-demand food delivery company struggling to reach profitability. Short interest on WTRH is about 6.3% of the total float.

The Seeking Alpha Quant Rating on WTRH moved to Hold from Sell on May 14 with the valuation and EPS revision grades recently improved.

Sector watch: Amazon's deal for Grubhub sent shares of DoorDash and Uber lower.