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There is a misconception between stock price and companies profitability or lack there of.

The price of a stock is public perception of the companies value.

The earnings (profits) the company reports represents the strength and market value of the company.

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12y ago
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Q: How can stock prices go up even when companies are not making money?
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Why do companies care what the price of their stock is Don't they get all the money in the IPO anyway What additional benefit do they derive from high prices in the secondary market?

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