It probably would not have much of an effect as long as FB was trading flat. This is based on recent splits especially GOOG and GOOGL. I think you could also hang onto your shares and redistribute it between class A and class C after the split. In the grand scheme of things, I don't think the split will matter too much.
Sometimes it is hard to figure out. I certainly cant. I just don't trade earnings for this fact. There seems to be a disconnect but I do say that over the long term the earnings keep driving FB upward.
Earnings reactions like this go beyond explanation but I have seen the same pattern with numerous other stocks. I would have to say the overall reaction should have been much more positive. Ah makes it look like there will be a lot of momentum and then there is a big fizzle. Even though I have have seen the same pattern with some other stocks , most usually follow the results of their earnings,
Like I said, I don't invest earnings anymore. I have got burned too many times. Being a trader, it seems like I should be able to make a simple earnings call but I can't. When the earnings are pat, or average, it seems as though that is when the stock flies.
I usually wait until the Monday after earnings to trade unless there is something really compelling.
There are actually currently 2.87 billion shares outstanding 2.32B class A and .549B class B. There will be 3(2.87B)= 8.61 billion share based on the current number of shares outstanding. You are correct in your understanding that the shares will triple. The shares outstanding are based on the current 10-Q SEC filing by FB.
There will be a lot of shares but I think as long as FB does well they will appreciate nicely. I think, however, with the number of shares it will be too hard for FB to make huge gains and become a momo stock again. I believe that FB's pps gains will lag their earning performance but not by much.
The big drop in a months time is just the summer doldrums with a distance to next ear once.
The first year the stock was new and the insiders are holding a lot of shares so the number of shares are thin. Tons of people wanted in and funds wanted a FB position in their portfolio. If we look at now, the number of shares have increased from 2 billion (@ipo) to 2.87 billion. The big funds have their positions set. There is no urgency to trade. Many people are just holding. Lower volume iscommon as a company matures. Right now FB is moving with a nice trend but the days of big swings are over due to lower volume.