Stock Watch: Peapod's Sales Are Down
Shares of online grocer Peapod (Nasdaq: PPOD) fell 13-16 to 12-3/16 on Thursday one day after the company announced its first-quarter results. Peapod's loss of 29 cents a share was one cent less than analysts surveyed by First Call expected, but the company's net sales of $18 million were less than the $18.9 million reported for the first quarter last year.
Peapod could soon have a major battle on its hands from competitor HomeGrocer.com. On Thursday, HomeGrocer.com announced that it is gearing up for its national expansion and has become the first investment of former Netscape president and CEO James Barksdale's new investment group. Barksdale has joined the board of directors of HomeGrocer.com, which launched last year and currently operates only in the Seattle area.