Reflexivity

Reflexivity is the idea, associated with investor George Soros, that a stock's price and a company's underlying fundamentals aren't always cleanly separate, sometimes price itself feeds back and changes the fundamentals rather than simply reflecting them. A rising share price can give a company cheaper access to capital, letting it raise money or make acquisitions using stock as currency in ways that genuinely accelerate real growth. A falling price can work in reverse, raising borrowing costs and narrowing a company's options at exactly the moment it needs them most.

This matters most for a company already trading at a valuation that assumes strong future growth, since a valuation partly built on the market's own confidence carries the risk of unwinding in both directions at once if that confidence breaks.