Wall Street is placing more value in consumer-oriented technology stocks and leaving behind tech stocks of companies that sell to other businesses, CNBC's Jim Cramer said Thursday.
"The market wants nothing to do with tech companies that serve the enterprise, but ... it loves the consumer," the "Mad Money" host said.
Cramer illustrated his point by juxtaposing the action in Roku and Cisco Systems, whose stocks are up roughly 385% and 3.7%, respectively, this year. Cisco's shares are off about $13 from their July highs, while Roku shares are down nearly $30 from their highest trade in September.
Cisco, the networking equipment maker, saw its stock plummet 7.33% below $45 per share during the session after the company forecast revenue would decline in the current fiscal quarter, despite delivering top- and bottom-line beats for the quarter that ended in October.
Earlier in the day, CEO Chuck Robbins said on "Squawk on the Street" that Cisco continues to face challenges as the company's larger customers cut back on their spending plans because of global economic uncertainties.
The end market matters because of geopolitical tensions, such as the Brexit and U.S.-China trade disputes, and slowing global growth, Cramer said. Enterprise-focused tech stocks were once thought to be able to weather the storm of a tough economy, but they "have effectively turned into market punching bags," he said.
"Until we deal with this macro uncertainty, stocks like Cisco and its colleagues could be stuck in neutral at best, or have some more down days, or weeks at worst," Cramer said.
Roku, which sells internet technology that allows users to watch TV and stream video content, is riding the on-demand video wave. The device carries the major streaming platforms such as Netflix, Hulu and Disney+. The stock rallied another 4.5% to close at $148.70.
Disney and Apple both launched streaming services earlier this month as more and more companies look to compete with Netflix in the video streaming wars.
"So when Disney has the single most successful launch for a streaming service in history, you buy Roku," Cramer said. "It's the leading way to watch all of these services, a classic arms dealer that allows the consumer to get every channel she wants. When you consider it in that light, it's easy to see why the stock's had such an epic run and why it might have even more upside."
Disclosure: Cramer's charitable trust owns shares of Cisco Systems and Walt Disney.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com