The problem with the pure short-term earnings model is that the stock value is highly sensitive to short-term swings in earnings per share (EPS).

Name: The problem with the pure short-term earnings model is that the stock value is highly sensitive to short-term swings in earnings per share (EPS).
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The pure short-term earnings model focuses solely on immediate earnings per share and can lead to volatile stock prices with even small fluctuations in EPS.

The Problem with the Pure Short-Term Earnings Model Is That