Investors who want to understand why the market's top technology stocks are so misunderstood need only to watch Facebook CEO Mark Zuckerberg's testimony before Congress, CNBC's Jim Cramer said on Wednesday.
"They're the perfect microcosm for how many investors really view these stocks," the "Mad Money" host said, referring to FAANG — his acronym for the stocks of Facebook, Apple, Amazon, Netflix and Google, now Alphabet.
"Here's the fundamental problem: most people over the age of 40 don't even know what these companies do," Cramer continued, pointing to Congress' seemingly weak grasp of Facebook's business model.
But for Cramer, the generational divide was only part of the problem. The other part was people being too skeptical about the tech giants because of their ever-changing stories.
"The truth is, FAANG is hard to understand because these companies are constantly evolving. They change the business models all the time," he said. "I'm not urging to you embrace their seemingly sky-high market capitalizations. ... I'm simply saying that they have these valuations for a reason, with many different parts of their businesses firing on all cylinders."