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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Dissatisfied shareholders can vote out the company directors. This is especially a danger when an activist investor buys up a bunch of shares on the cheap and starts riling up the other shareholders.
If the stock price falls enough, the company is vulnerable to a hostile takeover.
A low stock price prevents the company from using a secondary offering to raise additional capital for expansion.
If employees are receiving equity, a low share price means you’re going to have a lot of pissed off employees.
As share price declines, so does the literal value of the company. A company with a small market cap generally finds it harder to borrow money, to compete for talent, to forge strategic partnerships, etc. than one with a big market cap.
CEOs have big egos. No one wants to be the guy who saw his company turn into a penny stock.
Etc.
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