Whether your share price goes up or down may depend on how well or not you are able to meet the expectations of your investors and the market. It may be doing well today, but yesterday people might have expected today to be great. Or the stock price can go up if a company is doing badly today, if yesterday investors expected today to be terrible, a company that carries high expectation can disappoint the market with a stellar result because the expectation has been priced into the share price. A high share price is what every shareholder desires.
Another factor is that the value of a stock is determined by long-term future cash flows. How a company seems to be doing today may not have a lot to do with its long-term future prospects. However, short-term price movement can be totally random. This means in the short run, stock prices are not directly related to a company’s earnings. But in the long run, they are.
Then again only about half of a company’s stock price moves for a typical stock are related to how it is doing. The other half is determined by larger scale of events like how the economy is doing and what’s happening with interest rates and currency prices.
The stock price has a direct connection to the company. At the same time many things are connected to companies stock share price, bad press, and direct competition from other company with same product.
Establish companies, in growth areas, where these companies are growing earnings per share sequentially. That is a stock to own in the long run.