> If a company doesn't show growth, it is quickly labelled as "in trouble" or "dead". Why? Because of the stock market. Current prices today reflect growth exp

> If a company doesn't show growth, it is quickly labelled as "in trouble" or "dead". Why? Because of the stock market. Current prices today reflect growth expectations. That's why people are paying so much for Tesla shares – they are trying to get a 'bargain' today, assuming the company will grow to immense numbers in the future. If that doesn't work, share prices will implode and be adjusted to reflect things like revenue and inventory. They will be valued just like the bakery next door. Private companies also have an expectation of growth but, until they start issuing shares, the expectation is nowhere near as high. Of course, no company can keep growing forever. At some point reality catches up and they will either slow down growth significantly, or they just crash under their own weight.