New Drone Regulations

Investment Analysis Clubs Saul’s Investing Discussions
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New laws on drone use could significantly affect future utility of drones. This will probably directly affect stocks like AMBA and QCOM and indirectly companies like AMZN. From The Guardian:

In the not-too-distant future, Amazon could use a drone to deliver a package from a country warehouse all the way to … a nearby farm.

And that, the government said on Tuesday, is about it.

The Obama administration green-lit commercial drone flights but said it wasn’t ready to let Google and Amazon launch automated drone delivery fleets out across urban areas.

The regulations mark the government’s first explicit efforts to define the commercial uses for the horde of small, plastic, buzzing aircraft that are invading America’s skies. The Federal Aviation Administration said commercial drones are OK so long as the drone and its payload weigh less than 55lb, stay within unaided sight of the pilot and operators pass a test every two years. In addition, each drone must have its own pilot.

Read the entire article at https://www.theguardian.com/technology/2016/jun/21/amazon-go…

Matt
MasterCard (MA) and PayPal (PYPL) Ticker Guide
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx

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“The government said it lacks data on the safety of flying drones outside the line-of-sight of the pilot; though it said operators could apply for a waiver on a case-by-case basis.”

The govt. drew the first line in the sand, but it’s sand, not stone. They recognize and admit as much by allowing companies the possibility of a waiver if they make their case, and that seems to be a fair approach at this point.

This is just the beginning and it will be interesting to watch it unfold. A lot of money is at stake, and in the end money seems to usually win.

Cheers,
Mj
Long AMBA

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