From my little understanding, company’s issues stocks to raise money. So once the company’s sell those stocks, why does it stock prices matter to them?
In: Economics
You’re incorrect in the assumption that stock issue is a one-time thing.
Companies will have an internal assessment of what they think the stock price should be and what the market says it is. They will also have an assessment of how much cash they have on hand, and how much they need to fund their upcoming projects.
Based on these two factors, companies can make the decision to either issue more stock or buy stock back from the market. Many companies constantly issue fresh stocks to compensate employees, rather than handing out cash. This makes them sensitive to the prevailing stock price on a regular basis.
As a practical example, AMC has been issuing fresh shares (diluting) a lot over the last few years to sustain their business, and they’ve gotten a great deal doing this because of the inflated share price (thank r/wallstreetbets).
This is all on top of investor pressure, which is better described in the other answers.
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