There is some underlying truth in terms of dividends and stock buybacks (effectively a dividend, but paid by reverse-dilution), but the vast (VAST) majority of invested dollars are fully disconnected from any actual business outcomes, except by the publicity and expectations channel.
Don’t forget the Greater Fool theory (https://www.investopedia.com/terms/g/greaterfooltheory.asp). Stocks go up because investors expect them to go up, and those investors’ purchases actually drive the price up.
There is some underlying truth in terms of dividends and stock buybacks (effectively a dividend, but paid by reverse-dilution), but the vast (VAST) majority of invested dollars are fully disconnected from any actual business outcomes, except by the publicity and expectations channel.