The company benefits by convincing investors that it’s still growing and innovating. If investors think they are still growing their stock prices go up. If their stock prices go up then they can use their stock as an asset to borrow against or as a form of payment in lieu of cash. Stock is particularly useful to a company as a medium of exchange because they can just make more. But they can only do that without tanking the value if people are buying, and they can only keep people buying if they think the price will go up, and the only thing the price will go up if they think the company is going to become more profitable in the future.

This is basically Cory Doctrow’s argument in his latest book.