Shares of Coinstar (CSTR) Keep Surging

Coinstar (CSTR) rose over 16% today gaining $6.15 a share to finish the day at $44.36. Coinstar is best known as the owner of the Redbox DVD kiosks.

Coinstar's DVD business grew a whopping 70% in the last quarter. According to J. Scott Di Valerio, Coinstar's chief financial officer "The traction we gained in the first quarter indicates we are well-positioned for continued success in our DVD business. Solid execution in our core businesses drove our strong financial results across the board."

While business has been booming, this may not be a good thing for Coinstar. The company may be becoming too dependent on Redbox revenue. Redbox sales make up over 75% of Coinstar's revenue. Redbox will soon have to wait almost a month after a dvd's release to rent it. It's currently unclear as to how this will affect Redbox's future earnings.