Drone Stocks Analysis – Top 6 Players in the Market

Drone Stocks Analysis
  • Drone stocks – the stocks of companies that work in the drone industry – are some of the most attractive ones due to the companies’ innovations, revenue, and valuation.

  • Find out a few of the biggest players in the drone industry.

Drone usage in different spheres of life is amplified as the years go by. Nowadays, they are present in various industries, revolutionizing the way they function. Starting from e-commerce to energy, you can encounter them everywhere, even in investment portfolios. That’s right – drone stocks are the stocks of companies whose work is in some way connected to the drone industry.

While in the past, the extent to which drones could be used was more limited, the regulations are loosening up in many countries, including the United States. This leaves more room for recreational uses of drones rather than only professional ones. The Association for Unmanned Vehicle Systems International (AUVSI) estimates that by 2025, the economic impact of civil drones in the U.S. could go to $82 billion.

This indicates that the market for these devices is spreading and so do the stocks of the companies that sell them. Therefore, it’s wise to weigh all the options and make a decision to invest in some of these drone stocks that will bring you a high return on investment alongside many other benefits.

Are you interested in discovering more details about this? If you answered yes, stay with us and read on as we analyze the stocks of the top drone companies right now (in no particular order).

1. Nvidia

Nvidia Corporation is best known for providing graphic, networking, and computer solutions in the United States, China, Taiwan, and internationally. In recent times, it has launched an AI platform that encompasses drones as well as driverless vehicles. This way, it makes drones smarter with the help of artificial intelligence.

The company announced multiple big accomplishments in the drone market. For one, the huge Chinese online retail world JD.com and the General Electric company Avitas started using Nvidia’s AI platform to power their drones across their different tasks and initiatives. This opens doors to the market of the largest retailers that use drones in their processes since JD.com is partly owned by Walmart.

Many collaborations with notable partners are in store for the company which despite the projections doesn’t seem to stop. Still, Wall Street expects its earnings to slow down to an average of 9.5% annually.

Nvidia is listed on NASDAQ and its annual revenue is around $28.6 billion. In terms of the price of the drone stocks, as of December 2022, it reached $152, which is significantly lower than the $300 at the beginning of 2022.


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2. Alphabet

Source Wing - drone stocks analysis
Source: Wing

Google’s parent company, Alphabet, has recently become famous in the field of autonomous driving units and drones. In 2019, Alphabet’s Wing became certified by the FAA after the certification by the Australian Government. Wing started operating in Christiansburg and especially during the COVID-19 pandemic it saw a rise in drone delivery.

That’s how it expanded in Finland and began performing demo flights in Texas. These flights were meant for testing self-delivery drone service and represent the biggest test program in the United States. The drones have various useful abilities like carrying tough goods and traveling fast, which tends to be attractive to long-term investors. Also, it can eventually lead to higher stock prices.

Another reason why investors should consider Alphabet’s so-called drone stocks is the expansion of its autonomous driving tests.

With a market capitalization of $1.9 trillion, this giant in the technology field looks like a promising investment. In terms of the price of the drone stocks, it stands at $89.23 as of the end of 2022.

3. Joby Aviation

Source Joby Aviation - drone stocks analysis
Source: Joby Aviation

Another company that investors should keep an eye on is Joby Aviation. Its headquarters are in Santa Cruz, California and it’s worth $3.2 billion. Abandoning the hobbyist and military market, Joby introduced the passenger drone. Basically, it aims at becoming Uber in the skies.

After 10 successful years of development, this doesn’t have to be a far-fetched dream. The vehicle that is electric-powered works as an aircraft where 4 passengers and 1 pilot can fly. It has over 1,000 test flights behind it and the company will only continue to develop it until there is a whole fleet of such vehicles in the sky, making air transport a service that Joby will sell in the future.

Even though currently the metrics for evaluation of the drone stocks suggest that Joby Aviation is overvalued, the financial stability and the prospects for growth indicate that the stocks may be good for momentum investors. When it comes to the price of the stocks, it’s estimated at $3.35.

4. Boeing

Even though primarily Boeing makes fighter jets and airliners, it has entered the drone stocks market with a fair number of vehicles. The company and its subsidiaries work on many other innovative projects in the drone and aircraft industry, including use of AI.

This is why, the market capitalization of Boeing is $128 billion. However, due to some difficulties in the commercial division, IBD Stock Checkup gives the company a weaker Composite Rating of 44 out of 99.

Still, the company is acknowledged for its revenue of $61.4 billion and the fact that it has 142,000 employees. The price of the drone stocks stands at $187.55 and went up to $190.55 in the previous period.

5. Amazon

Source: Amazon

We come to Amazon – one of the giants of ecommerce, including drones. Some of the large companies like Alphabet, JD.com, Walmart, and some smaller ones have joined forces with Amazon to test delivering packages with drones – Prime Air.

Judging by how successful the tests are and the efficiency of this technology, it’s a matter of time before drones become a regular part of people’s lives and they greet them at their doorsteps to receive their packages. However, strict drone regulations in certain countries may prove to be a challenge.

It looks like Amazon will benefit a great deal from using drones. Furthermore, it has an excessive number of packages ready for delivery daily and high costs in return. Thanks to the usage of drones, those costs stand to be lowered, increasing the profits of the company and its reputation. As a bonus, customers will receive their packages in a fast manner.

Even if the company’s plans for drone delivery don’t succeed, Amazon’s dominance of the e-commerce market, its expansion, and its highly-profitable business in the field of cloud computing ensure that its “drone stocks” will be a fruitful investment.

The market capitalization of the company reached $1.7 trillion with a Composite Rating of 63 and an EPS Rating of 78, which proves its power in the market. It’s featured in the NASDAQ with annual revenue of $502.2 billion. When it comes to the stock price, it’s estimated at $84.

6. GoPro

Creator-Josh-Edelson-AFP-Getty-Images - drone stocks analysis
Creator: Josh Edelson / AFP-Getty Images

Finally, GoPro is another strong player in the drone market and can be a great addition to an investment portfolio with its drone stocks. The company makes it to the headlines with its cameras, accessories, and subscription software and services in the U.S. and international markets.

It stands behind a few drone cameras that have proven efficient and were accepted by customers. These cloud-connected cameras can even have premium features like 360-degree recording and waterproofness. The subscription service with Quik app access is also available to the customers for easier editing and transferring of the captured photos and videos.

Although the price of GoPro stocks is presently around $5, it has possibilities for growth and high return on investment as the company expands its services in various markets. It has a spot on the NASDAQ with an annual revenue of $1.2 billion. The market capitalization of the company reached around $750 million.


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Invest in Drone Stocks Now!

All things considered, there are multiple options to invest in drone stocks and increase your portfolio’s versatility. Companies like the ones we covered earlier sell stocks with a high return on investment and offer possibilities for growth. The key is to analyze them carefully and decide which ones match your current expectations and budget for investing. We hope we helped you make the right decision for enriching your portfolio with stocks from some of the top companies at the moment.