Cramer: Dick's Sporting Goods 'dropped the bomb' in its earnings call that has hurt other retailers

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Jim Cramer says Dick's Sporting Goods' plans to invest online could ruin the company's gross margins.

Dick's Sporting Goods"dropped the bomb" in its earnings call that has hurt a number of retail stocks as of late and investors should refrain from buying shares, CNBC's Jim Cramer said Tuesday.

Investors could, however, buy into companies related to Dick's survival strategy, Cramer said. And because of that, he recommended Facebook, Google-parent Alphabet, and Nike. Dick's plans to spend money at Facebook and Google to beef up its digital marketing and boost traffic on its website. The company also said it has to invest in robotics to mitigate its freight and shipping costs, an advantage that Amazon already has with its web services business, Cramer said.

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Which was why I was shorting the stock while the price kept going higher and technicals got rigged for a fakeout

That’s what happens when companies become political activists

I've been in libraries that had more traffic than Dick's.

Get woke go broke

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