The main reason too many shares is not great is because as the share count gets larger and larger due to more and more financing needs, it dilutes existing shares and their potential to go higher in share price.

This issue is somewhat subjective in that there are so many variables that in theory IF you know increasing shares guarantees the company's future success, then no problem BUT there never really is any guarantees and investors get nervous as shares outstanding grows and progress toward profitability does not seem sufficient.

SM