The goal is to maximize shareholder value, which is not the same as maximizing short term profits. Amazon famously did not turn a profit for years as its stock

The goal is to maximize shareholder value, which is not the same as maximizing short term profits. Amazon famously did not turn a profit for years as its stock price rose. It was able to do so because the market largely trusted the management. The reason why the stock market demands profit from most companies is that many, many managers and directors are bad at their job. Demanding profits is a way to keep management disciplined and focused, and avoiding years long boondoggles and fiascos. This is important since they are playing with other peoples money.