In a vacuum yes value is preserved, and I've held through a few Reverse Splits for that reason, but trading is also about sentiment of the shareholders. Flippers and shorts love R/S, offerings, dilution anything that can spook the mob. People who have smaller common holdings HATE R/S because it kneecaps their future profits so they often bail. I'm still holding a $2.5k bag of BRRN formerly QUTR at 50% my investment value where everyone else bolted while I held through.
Put it more at the current PPS If you hold 1000 shares at $4 in a 1:2 R/S then it become 500 at $8, but then a bunch of people sell at $8, shorts start putting downward pressure, and the PPS falls and if you haven't sold it becomes 400 at $4 and you are out the difference.
The reason I voted for the A/S increase is that they've been incredibly judicious on dilution, only doing so to acquire new businesses that have increased shareholder value (QCA, Impossible Aerospace, and Vayu were all acquired by that manner). That way when we're at $20 I have that number times my current share number not half or 1/3
The original ALPP run in November 2019 was murdered by the mention of a R/S (not that I'm complaining because it allowed me to get on) Also it typically benefits insiders while wiping out common share holders. That's not the case here, but not everyone realizes that. I'm trying to refer as many people as I can to the unprecedented step that CEO Kent took by making all share types subject to any R/S action.