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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This is akin to asking why a sports figure, who had a $50M contract is still playing and trying to negotiate a $60M contract in the future.
For those of us in the real world, a couple million would give you enough earnings to live without having to work again.
But that is not how those people work. To be that good at something means you are driven. And it is how you measure success. They are more concerned about measuring success because they are driven.
Companies are the same, they want to win, every quarter is a race and the stock price is the score card.
Did Michael Jordan ever think “yeah, I have hundreds of millions, I’ll just phone it in from here”? Probably not.
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