Why do people think a stock should have a certain price based on the company's revenue? Stock investment comes part and parcel with discussions about quarterly earnings, P/E ratios, and a host of other considerations designed to measure the &quot;intrinsic value&quot; of a stock and whether it &quot;should&quot; go up or down, or predict future prices based on whether the company is growing/shrinking.
Considering only stocks that don't offer dividends:
Why do investors care about P/E ratio, revenue, or any other company revenue/growth metric? If a stock is worth what people are willing to buy/sell it for, why are investors making their buy/sell decisions based on metrics that don't affect anyone outside the company?
If the price is too low (relative to any metric, be it earnings, growth, etc.), then anyone can profitably launch a takeover/acquisition bid.
Example. A company has 1B shares each priced at \$1 (so market cap is \$1B), pays no dividends, and earns \$100B (profits) per year. Then one could buy up all 1B shares for \$1B, own the company entirely, and enjoy \$99B in profits in just the first year alone.