This year, Netflix(NFLX) shares have recovered, gaining 29%.
But the company hasn't been able to escape bad news in 2012, either. Last week, millions of Netflix customers couldn't stream videos due to an outage that lasted nearly half a day. The company said the problem stemmed from technical issues in servers run by Amazon.com(AMZN).
Earlier this fall, Netflix warned of a disappointing outlook after releasing its third-quarter earnings report. In the first three quarters of 2012, Netflix added 3.4 million new video streaming subscribers in the U.S., falling short of its previously announced goal of 7 million.
Netflix's costs are also rising, because studios are demanding a lot more cash for the streaming content they're providing. At the same time, subscriptions to the company's DVD service are falling.
In October, corporate raider Carl Icahn said Netflix is a prime takeover target for technology giants as he bought a nearly 10% stake in the company.