Coinstar Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Coinstar (NAS: CSTR) surged more than 10% in early trading on news of a potential partnership with Verizon (NYS: VZ) in Big Red's bid to compete with Netflix (NAS: NFLX) .

So what: Multiple reports now say that Verizon wants to offer a streaming service. Having Redbox as a partner could help Big Red go after not just Netflix but also (NAS: AMZN) and DISH Network (NAS: DISH) , which also offer Netflix-like on-demand offerings.

Now what: It's too early to predict how well this pairing will play with consumers, but if history is a guide, today's rally is likely to be premature. Do you agree? Would you buy shares of Coinstar at current prices? Please weigh in using the comments box below.

Interested in more information about Coinstar? Add it to yourwatchlist.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He owned shares of Netflix at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Motley Fool newsletter serviceshave recommended buying shares of Netflix, Coinstar, and Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.