If the price of a share of stock decreases but the price per earning for a share of stock increases that means the stock has a cheaper price and a buyer will make more money per time while the stock is the new price per earning than when It was the old price per earning it the number of shares in the corporation did not change.
It the price per share gets divided by X but the price per earning for each share gets multiplied by X that means that those who neither by not sell stocks will make the same amount of money per time off the shares they already own as long as the new price per earning for each share remains X times the old price per earning for each share and the new price per share remains equal to the old price per share divided by X if the number of shares in the corporation does not change
Earnings = Price * Price per Earnings
New Earnings = (Old Price/X)*(Old Price per earning*X) = Old Earnings
The reason this is worded so complicated is because I am talking about the earnings in a instantaneously moment in time since these quantities fluctuate
By price per earning for each share I do not mean the P/E ratio divided by the number of shares but simply the P/E ratio of it is calculated as follows
The price-to-earnings ratio, or P/E is the ratio of the market price of a company’s stock to its earnings per share (EPS):
| P/E Ratio = | Market Value per Share |
 | |
| Earnings per Share (EPS) |
https://www.investopedia.com/university/peratio/peratio1.asp#ixzz56O4HqvZr
Accessed 2018 February 6
Additionally if the price price per share decreases them someone purchases a share and then the price per share increases again later and that person sells a share they would make money not considering the fee common people generally pay a third party for being allowed to make each transaction this is if the number of shares in the corporation does not change during this time period.
However people who intend to sell maybe unhappy with this situation
By earnings I mean money made per time at that instantaneous moment for someone owning stock in that company of any number of shares which would be directly proportional to the number of shares they own.
This might not be the exact same definition as what other people mean by the definition of earnings or the other words I have used in this article
This is not investment advice
This is not considering taxes
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