Regardless of who you ask, it’s become abundantly clear, drones will be a big part of our future. When you realize this fact, making an investment in drones can seem like the logical next step. However, like in any nascent industry, investing can be difficult, especially for first time investors.
So where exactly can you put your money? Here are a few ideas …
While the future could be promising for drones, their nascent stage makes them an impractical investment. Currently, there’s no great direct drone stock for public investors to buy. GoPro is probably the closest thing to a drone stock, but it’s far from a pure-play. Shares of GoPro have lost half their value this year as investors fear the company’s sales growth is slowing.
Investors could also invest in companies like Google or Facebook, which are developing drone technology, but a payoff, if any, could be years — if not decades — away. Amazon and Walmart could possibility benefit from drones if they drive their shipping costs down, but in the meantime, investors will need to eat the costs and investments in trying to develop the technology.
Investors hoping to spread their risk across companies and beyond drones could consider the Robo Global Robotics & Automation exchange-traded fund (ROBO). There are downsides, though, including the relatively high expense ratio of 1%. It’s also more of a robotics play than a drone one.
Making a cash investment in drone technology isn’t the only way you invest for your future. You can also invest in your future with education; learn how to operate a drone safely and prepare yourself for the FAA Part 107. Learn from the very best; Drone Universities has been teaching students just like you for over two years now and our core training staff has over 150 years of combined aviation and UAS experience.