If the companies have already sold their stock, and it’s being sold on the market, why do they care? Obviously large shareholders that have board spots or the ability to threaten higher ups, they matter. But since a company makes their money from their business, selling this or that, why do they care so much about the stock price? If the company is making money, but if shareholders expect more and the stock price is low? Who cares they’re making money.
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Good answers so far, but missing an important factor. Most non-ipo companies are either “lifestyle” businesses, or growth companies. Lifestyle businesses are not relevant , since they are characterized by low growth, and high salaries to founders. Otoh, small, high-growth companies almost always will need additional funding from investors. In this case, investors are looking for high return on investment, which can only come from high growth in the value of the business. Existing investors / shareholders are the first place any company will look when seeking new funding.
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