Overstock.com 2007 Annual Report Download - page 36

Risks Relating to the Securities Markets and Ownership of Our Securities
The price of our securities may be volatile and you may lose all or a part of your investment.
Our common stock has been publicly traded only since May 30, 2002. The market price of our common stock has been subject to significant fluctuations
since the date of our initial public offering. These fluctuations could continue. It is possible that in some future periods our results of operations may be below
the expectations of public market analysts and investors. If this occurs, the market price of our securities may decline. Some of the factors that could affect the
market price of our securities are as follows:
changes in securities analysts' recommendations or estimates of our financial performance or publication of research reports by analysts;
changes in market valuations of similar companies;
announcements by us or our competitors of significant contracts, acquisitions, commercial relationships, joint ventures or capital commitments;
general market conditions;
actual or anticipated fluctuations in our operating results;
intellectual property or litigation developments;
changes in our management team;
economic factors unrelated to our performance; and
our issuance of additional shares of stock or other securities.
In addition, the securities markets have experienced significant price and trading volume fluctuations. These broad market fluctuations may adversely
affect the trading price of our securities. In the past, following periods of volatility in the market price of a public company's securities, securities class action
litigation has often been instituted against that company. Such litigation could result in substantial cost and a diversion of management's attention and
resources.
Our quarterly operating results are volatile and may adversely affect the market price of our securities.
Our future revenues and operating results are likely to vary significantly from quarter to quarter due to a number of factors, many of which are outside
our control, and any of which could harm our business. As a result, we believe that quarterly comparisons of our operating results are not necessarily
meaningful and that you should not rely on the results of one quarter as an indication of our future performance. In addition to the other risk factors described
in this report, additional factors that have caused and/or could cause our quarterly operating results to fluctuate and in turn affect the market price of our
securities include:
increases in the cost of advertising;
our inability to retain existing customers or encourage repeat purchases;
the extent to which our existing and future marketing agreements are successful;
price competition that results in lower profit margins or losses;
the amount and timing of operating costs and capital expenditures relating to the expansion of our business operations and infrastructure;
the amount and timing of our purchases of inventory;
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