There was a news article regarding Trump's opinion to possibly remove Quarterly Earnings Reports and to only report every 6 months. This is an interesting scenario, as what investors and traders value in the financial markets is subjective. Some traders love volatility, while some love the halcyon phases to be more conspicuous with a long-term buy-and-hold strategy (without the shocks). At the end of sharing my insights with you, I'd like YOU to decide for your own which is the best, as I hope this will open up interesting perspectives from this fascinating finance topic.
From my trading experience, I'd like to share what Quarterly Earnings have and have NOT done, with the unstated premise to have the agenda to "strive to make the world 1% more efficient". Following all trading rules, both legal and ethical from the FTC standpoint is presumed.
From a YTD perspective, I've witnessed some very interesting Quarterly Earnings short-term and long-term outcomes I'd like to share. The first one that comes to mind is ANET. In the Spring of 2025, I remember turning into their earnings call. Despite the exec's sense of confidence, it was during a time where DeepSeek's presence was being talked about and NVDA was suddenly struggling (ubiquitously for the first time). During the webcast call, ANET went from $100 and was decreasing in share price to $80 quickly (it went to $80 in one or two days, max). The short-term effects from the Quarterly Earnings Announcement had, arguably, "created" a sudden sense of skepticism in the tech industry. However, as we zoom-out and look at the big picture, we can see months later that ANET was really going just fine. Today, the financial security is proudly at $145.43 per share.
Another example of an uneeded shock? RH, a furniture firm that was once thriving in the CD Sector, where its direct investments were heavily allocated in the US. During Trump's first official announcement of the tariffs back in April, RH had their Quarterly Earnings Announcement on April 2nd, 2025 (followed by June 12th, 2025). The short sentiment and groupthink really wrecked havoc on the firm, but for those that structured a L.Straddle most likely actually made money on the firm's sudden upswing just 3 weeks later.
Perhaps the most fascinating of them all, in recent events, was SanDisk's increase in stock price just in the last month. About a month ago, I researched the fundamentals of SNDK, seeing ratio after ratio of positive indicators. From a fundamental basis, i couldn't understand why the stock was hanging around at $45. As luck would have it, SNDK increased in price soon after it's Quarterly Earnings Announcement, which was on August 14th, 2025. Today, SNDK is at $90.09.
Must it come down to picking sides to have a positive discussion on whether we should keep or remove Quarterly Earnings Reports and to transition them to 6-M and 12-M Reports? Whether you are for Quarterly or more for 6-M Reports, there are examples upon examples of financial securities that have had to endure extra pain, only to recover and to continue it's journey to maximize value to its shareholders.
Of course, I'm sure there are many examples where it should espouse traders, especially with key information to check-in. My prediction is that the VIXY would become more calm, with bigger adjustments in institutional portoflios every 6-months. Instead of unneeded shocks, though, it would be more like reshuffling the deck or rearranging seats for 6 months.