eli5 why do companies with billions in the bank care about stock prices. Wouldn’t they be financially fine if the stock lost money?
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Their owners would be annoyed, because their owners care** about what they can sell the stock for
** may or may not, depends on the individual investor. Most care about what they can sell the stock for, because that’s more tax efficient, but there are also investors that don’t much care about the stock price but rather the overall performance of the company, whether its missions are being fulfilled, etc. – however, these are few and far between. For example, Berkshire Hathaway doesn’t tend to care as much about stock price as about cash flow.
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