Why DigitalGlobe (DGI) Stock Is Gaining On Wednesday

NEW YORK (TheStreet) --Shares of DigitalGlobe Inc. (DGI) are higher by 4.71% to $32.02 this morning after the U.S. government approved the company's request to sell higher resolution images which could bring $400 million in additional market opportunities, Reuters reports.

The company is the only provider of high resolution commercial satellite images in the country and is now licensed by the Commerce Department to begin the sale of images with a 40 cm resolution, up from 50 cm.

In August DigitalGlobe plans to launch its Worldview 3 satellite, six months later the company will be able to sell images at 25 cm, allowing a user to go from identifying an object as a car, to identifying its make, according to Reuters.

Must ReadWarren Buffett's 25 Favorite Stocks 

"It means we'll be able to solve new kinds of problems, and as a result grow our business," DigitalGlobe Chief Executive Jeffrey Tarr told Reuters.

DGI Chart DGI data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%