Why DICK’S Sporting Goods (DKS) Stock Crashed Yesterday

We recently compiled a list of the Traders Flee These 10 Stocks Today. In this article, we are going to take a look at where DICK’S Sporting Goods, Inc. (NYSE:DKS) stands against other stocks that crashed yesterday.

Wall Street’s main indices ended mixed on Thursday as investors continued to digest a series of first-quarter earnings and key economic data.

Among the three indices, only the Nasdaq registered losses, down 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent.

Meanwhile, 10 companies registered hefty losses during the session, battered by a flurry of negative news, missed estimates, and a weak outlook for the rest of the year. In this article, let us explore the 10 companies that lag in performance and identify the reasons behind their decline.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

A customer in a specialty concept store wearing a full outfit of apparels and sports gear.

DICK’S Sporting Goods, Inc. (NYSE:DKS)

Dick’s Sporting Goods (NYSE:DKS) tumbled by 14.58 percent on Thursday—a third day—to close at $179.05 apiece following the release of its preliminary earnings results and news that it would acquire Foot Locker, Inc. (NYSE:FL) for $2.4 billion.

In a statement, DICK’S Sporting Goods, Inc. (NYSE:DKS) said it expects to report sales growth of 4.5 percent and earnings per diluted share of $3.24.

Meanwhile, the company announced that it had entered into a definitive merger agreement to acquire Foot Locker at a price of $24 apiece.

It also offered shareholders the option to convert their Foot Locker, Inc. (NYSE:FL) shares to 0.1168 of Dick’s common stock.

The transaction is subject to regulatory and shareholders’ approval, as well as other customary closing conditions. The companies expect to close the transaction in the second half of 2025.

Overall, DKS ranks 2nd on our list of stocks that traders flee today. While we acknowledge the potential of DKS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DKS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.