This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Even Without Google, DigitalGlobe Will Continue to Grow

Stocks in this article: GOOG DGI AAPL MSFT NOK

NEW YORK (TheStreet) -- Google (GOOG) will be able to generate the images for Google Maps itself, thanks to the acquisition it announced this week. That should be bad news for DigitalGlobe (DGI) which supplies pictures for Google Maps, right? Wrong.

Google is not one of DigitalGlobe's major customers. The company gets more than 80% of its revenue from government agencies.

For the current year, DigitalGlobe has forecast revenue growth of between 3% and 8% from 2013. The company is aiming for Ebitda (earnings before interest, taxes, depreciation and amortization) margins of at least 50% in the fourth quarter, up from 39.4% in the first quarter.

The U.S. government has permitted DigitalGlobe to sell its sharpest satellite images to all of its customers. Meanwhile, the company is gearing up to launch a new imagery satellite within two months. Those two developments will easily offset any possible decline in Google revenue.

On Tuesday, when Google announced it has agreed to acquire Skybox Imaging for $500 million, DigitalGlobe's shares dropped by 4%. The company's shares still haven't fully recovered, trading at $30.25, up 16 cents, late Friday morning.

Skybox Imaging provides high-resolution satellite images and videos. Through the acquisition, Google aims to bolster its Google Earth and Maps offerings, such as the Google Earth Enterprise, and to provide high-speed Internet and disaster relief services.

The search engine giant gets the images for Google Maps from more than a thousand different sources, including DigitalGlobe. The Skybox acquisition will reduce Google's reliance on DigitalGlobe. On the flip side, DigitalGlobe might end up losing a high-profile customer.

DigitalGlobe is a 20-year old company valued at $2.28 billion. It was a much smaller company until January 2013, when it completed an $1.4 billion acquisition of GeoEye, another company that provides satellite images.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs