CNBC’s Jim Cramer, who has long urged investors to buy Target and forget Wal-Mart, reversed his position on both stocks.
“I think the risk-reward has changed dramatically here,” Cramer said during an appearance on "Squawk on the Street."
Target's shares fell sharply Tuesday after the retailer said April sales at established stores would be "much weaker" than an earlier forecast.
Target said it now anticipates same-store sales -- a key measure of retail performance that measures sales at stores open at least a year -- to rise between 3% and 4% for the combined March-April period, below an earlier forecast for a rise of 4% to 6%.
The shares of Target's bigger rival, Wal-Mart,also fell on the news.
Cramer, meanwhile, said the addition of Allen Questrom to Wal-Mart’s board is “major.”