Posts  / #POST-058951
REDDIT

[NOVICE] What is the relationship between stock price and company success?

N
Mar 5, 2025 · 06:11

Sorry I’m not much of an investor, but lately I’ve been wondering something. Considering many stocks don’t provide dividends. Fundamentally, why does it even matter if the company succeeds or not?

If the price is solely fixed by supply and demand, why does the success of the company affects the price?

Let’s say Google announces a great new technology with amazing business potential. I, as a shareholder won’t see a dime from it.

Of course excluding the extreme case of a company failing entirely and shutting down.

Is it all some kind of psychological game where, even though it makes no sense, since everyone behaves as if company success matters, then it becomes a reality? If so, how is it different than bitcoin?