Jim Cramer believes that the valuation of Big Tech megacaps is justified.

• Jim Cramer advised investors on Thursday not to be concerned about the profitability of tech megacap stocks.
• These dominant stocks include all members of the “Magnificent Seven.”
• "They didn't deceive the most people to achieve their trillion-dollar valuations; instead, they had no other direction but upward progress," he stated.

On Thursday, CNBC's Jim Cramer advised investors not to be concerned about the high valuations of Big Tech megacap stocks, stating that their value is justified.

Even though we haven't encountered such individuals before, it doesn't mean they are fraudulent," he stated. "Their trillion-dollar valuations were not obtained through deceiving the greatest number of people. Instead, they reached that level because there were no other opportunities for growth available to them.

The "Magnificent Seven" stocks, namely , , , , , and , are currently dominating the market. However, some analysts have cautioned that this level of market concentration resembles the dot-com bubble of the 1990s.

Cramer rejected the notion that these tech companies lack the financial backing to justify their high valuations. He argued that these companies are profitable and therefore deserve their market leadership. Cramer believed it would be illogical to penalize these successful equities simply because they are dominant.

Cramer highlighted the substantial revenue and net income generated by the three companies, Apple, Meta, and Amazon, which reported quarterly earnings on Thursday after the bell.

Cramer argued that it is incorrect to believe that megacap stocks are overvalued compared to the rest of the market. Instead, he emphasized the importance of valuing these stocks in some way, regardless of their sales or earnings.

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The CNBC Investing Club Charitable Trust owns stakes in Apple, Microsoft, Nvidia, Amazon, Alphabet, and Meta.