NEW YORK (TheStreet) --With the United Parcel Services (UPS) - Get Report successfully completing a package delivery using a drone on Thursday, Oppenheimer senior analyst for emerging technology Andrew Uerkwitz joined Friday' afternoon's "Power Lunch" to discuss the future of drone technology and investments.
Although the capabilities of drones are advancing, regulations which place restrictions on how users can fly these devices has yet to catch up to the progressing technology.
"That's the biggest question on everybody's mind. They did pass a lot of laws recently and new rules, but they didn't really clear anything up. The line of sight is a big issue," Uerkwitz noted.
The line of sight regulation he is alluding to says that the operator of the drone must keep the device within their line of vision.
"For drones to get the 60 billion added to the economy you really need self-flying drones, and you cannot do that until regulatory is cleared up," Uerkwitz said.
Regarding investing in drones, he thinks investors have to look outside the commercial uses of these devices.
"I think it's an investable story, but you have to look towards something other than commercial. Right now it's got to be consumer or a supply chain guy who supplies to every drone maker," Uerkwitz explained.
Ambarella (AMBA) a semiconductor company recently increased its contributions to drone technology by 15%, he noted.
"Agriculture, mining, real-estate, there a numerous amount of other opportunities there. Self-flying is the big one," Uerkwitz concluded.