NetFlix 2014 Annual Report Download - page 14

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Table of Contents
held the stock for three years or, among other things, the board of directors has approved the transaction. Our board of directors could rely on
Delaware law to prevent or delay an acquisition of us.
In addition, a merger or acquisition may trigger retention payments to certain executive employees under the terms of our Amended and
Restated Executive Severance and Retention Incentive Plan, thereby increasing the cost of such a transaction.
Our stock price is volatile.
The price at which our common stock has traded has fluctuated significantly. The price may continue to be volatile due to a number of
factors including the following, some of which are beyond our control:
As a result of these and other factors, investors in our common stock may not be able to resell their shares at or above their original
purchase price.
Following certain periods of volatility in the market price of our securities, we became the subject of securities litigation. We may
experience more such litigation following future periods of volatility. This type of litigation may result in substantial costs and a diversion of
management’s attention and resources.
Financial forecasting may differ materially from actual results.
Given the dynamic nature of our business, and the inherent limitations in predicting the future, forecasts of our revenues, contribution
margins, net income and number of total and paid member additions and other financial and operating data may differ materially from actual
results. Such discrepancies could cause a decline in the trading price of our common stock.
None.
11
•
variations in our operating results;
•
variations between our actual operating results and the expectations of securities analysts, investors and the financial community;
•
announcements of developments affecting our business, systems or expansion plans by us or others;
•
competition, including the introduction of new competitors, their pricing strategies and services;
•
market volatility in general;
•
the level of demand for our stock, including the amount of short interest in our stock; and
•
the operating results of our competitors.
Item 1B.
Unresolved Staff Comments