Out Fox The $treet

U.S. investors have genearlly had limited opportunities to invest in the drone sector. The recent collapse of GoPro and Ambarella stock and entries into the drone sector provide attractive entry points. Drone Aviation offers a speculative play as it builds a business in the defense and commercial sector. While drones became one of the hottest market segments in the last couple of years, U.S. investors have had limited investment opportunities in the public markets. Some of the big government defense contractors that produce drones are so large they don't provide much growth opportunity, while the public companies moving into the consumer and commercial drone arena were richly valued and had limited revenues from drones. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Ambarella maintains a lofty valuation due to the potential for drones. The excitement over the drone market doesn't match the potential near-term revenue. Ambarella remains a good company with a stretched valuation that offers limited upside for investors. Prior to the recent selloff in Ambarella (NASDAQ: AMBA ), the market had gotten extremely excited over the potential of drones. The maker of high powered, video compression chips has been on fire over the last couple of years on the initial connection with GoPro (NASDAQ: GPRO ) cameras and now drones. Read the full article on Seeking Alpha. Disclosure: Long INVN. Please review the disclaimer page for more details.