Analysts Split On Trump's Push To Scrap Quarterly Earnings: 'A 90-Day Cycle Is Not How Business Operates,' Says Tom Lee - Costco Wholesale (NASDAQ:COST)

Core Viewpoint - President Trump's proposal to eliminate the quarterly earnings reporting requirement for public companies has ignited a debate regarding its potential impact on U.S. equity markets, with opinions divided on whether it would enhance or diminish market strength [1] Group 1: Arguments Against the Proposal - Analyst Joseph Carlson argues that the notion of quarterly reports promoting short-term thinking is unfounded, citing examples of U.S. companies making significant long-term investments, such as in AI infrastructure [2] - Carlson warns that removing quarterly earnings reports could lead to reduced transparency, leaving investors less informed and potentially facing worse stock pricing, as companies might struggle for months without timely updates [3] - He emphasizes that transparency is beneficial for the market and investors [3] Group 2: Arguments Supporting the Proposal - Market strategist Tom Lee supports the proposal, stating that a 90-day reporting cycle does not reflect how businesses operate, suggesting that the current system pressures companies to remain private [3] - Economist Trinh Nguyen also backs the move, noting that several developed markets, including the UK and EU, do not have quarterly reporting mandates, and highlighting bipartisan support for reforms aimed at reducing short-termism [4] - Influential figures, including BlackRock CEO Larry Fink and former Secretary of State Hillary Clinton, have expressed favor for the elimination of quarterly earnings requirements [4]