Amazon (NASDAQ: AMZN) made headlines this week by introducing plans for drone delivery. But we're still years away from that being a reality; the FAA doesn't have a plan for drones, and there are still technology questions to answer. However, there are some good ways to invest in this potential new industry.
If investors are seeking companies that will benefit from commercial drones, they should look at Aerovironment (NASDAQ:AVAV) and Lockheed Martin (NYSE:LMT), who make drones already. But we'll also need someone to make sure drones can communicate with each other, which is where Cisco (NASDAQ:CSCO) may play a big role.
Erin Miller sat down with Travis Hoium to see why he thinks these three stocks are the best ways to play drones right now.
Erin Miller has no position in any stocks mentioned. Travis Hoium is short shares of Amazon.com. The Motley Fool recommends AeroVironment, Amazon.com, and Cisco Systems. The Motley Fool owns shares of Amazon.com and Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.