Priceline 2010 Annual Report Download - page 94

20
contemplated or did not comply with the agency’s requirements, Booking.com may lose its certificate and, as a
result, the Innovation Box Tax benefit may be reduced or eliminated.
After the Initial Period, Booking.com intends to reapply for continued Innovation Box Tax treatment for
future periods. There can be no assurance that Booking.com’s application will be accepted, or that the amount of
qualifying earnings or applicable tax rates will not be reduced at that time. In addition, there can be no assurance
that the tax law will not change in 2011 and/or future years resulting in a reduction or elimination of the tax benefit.
The loss of the Innovation Box Tax benefit in future periods could adversely impact our results of
operations.
Our stock price is highly volatile.
The market price of our common stock is highly volatile and is likely to continue to be subject to wide
fluctuations in response to factors such as the following, some of which are beyond our control:
x operating results that vary from the expectations of securities analysts and investors;
x quarterly variations in our operating results;
x changes in expectations as to our future financial performance, including financial estimates by
securities analysts and investors;
x announcements of technological innovations or new services by us or our competitors;
x changes in our capital structure;
x changes in market valuations of other Internet or online service companies;
x announcements by us or our competitors of price reductions, promotions, significant contracts,
acquisitions, strategic partnerships, joint ventures or capital commitments;
x loss of a major supplier participant, such as an airline or hotel chain;
x changes in the status of our intellectual property rights;
x lack of success in the expansion of our business model geographically;
x announcements by third parties of significant claims or proceedings against us or adverse
developments in pending proceedings;
x occurrences of a significant security breach;
x additions or departures of key personnel; and
x stock market price and volume fluctuations.
Sales of a substantial number of shares of our common stock could adversely affect the market price of our
common stock by introducing a large number of sellers to the market. Given the volatility that exists for our shares,
such sales could cause the market price of our common stock to decline significantly. In addition, fluctuations in our
stock price and our price-to-earnings multiple may have made our stock attractive to momentum, hedge or day-
trading investors who often shift funds into and out of stocks rapidly, exacerbating price fluctuations in either
direction, particularly when viewed on a quarterly basis.
The trading prices of Internet company stocks in general, including ours, have experienced extreme price
and volume fluctuations. To the extent that the public’s perception of the prospects of Internet or e-commerce
companies is negative, our stock price could decline further, regardless of our results. Other broad market and
industry factors may decrease the market price of our common stock, regardless of our operating performance.
Market fluctuations, as well as general political and economic conditions, such as a recession or interest rate or
currency rate fluctuations, also may decrease the market price of our common stock. Negative market conditions
could adversely affect our ability to raise additional capital.
We are defendants in securities class action litigations. In the past, securities class action litigation often
has been brought against a company following periods of volatility in the market price of its securities. To the extent
our stock price declines or is volatile, we may in the future be the target of additional litigation. This additional
litigation could result in substantial costs and divert management’s attention and resources.