Wall Street seems to have lost faith in what was once the growth darling of organic and all-natural food stocks, CNBC's Jim Cramer said on Wednesday.
Just before shares of Whole Foods Market tanked more than 20 percent when trading opened Wednesday morning, Cramer said analysts that cover the organic grocer appeared to have turned on the company, expressing "rebellion" on Tuesday evening's conference call. Whole Foods reported quarterly earnings Tuesday that fell short of Wall Street's expectations.
"This was one of those conference calls where the analysts actually outright questioned whether the company is being serious about the competition," Cramer said on "Squawk on the Street."
"I think what people are going to say is I'd rather shop there than own the stock. The problem is there's a loss of faith here," he said.
Five analysts lowered their ratings on the grocery chain after Whole Foods' earnings. The company also cut its 2014 forecasts for same-store sales and earnings as competition increases in its sector.
In an interview with CNBC on Tuesday, Whole Foods co-CEO Walter Robb chalked up the disappointing quarter to "short-term headwinds," such as investments the company has made in new stores, frigid winter weather and price adjustments.