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Butterfly Network (BFLY) Is Up 7.7% After New AI Platform And Insider Buying - What's Changed

Simply Wall St · 20h ago
  • Recently, Butterfly Network announced a co-development and licensing agreement with Midjourney for its semiconductor-based ultrasound technology and launched Compass AI, an enterprise software platform aimed at improving point-of-care ultrasound documentation and workflow.
  • Alongside these moves, director Larry Robbins increased his direct ownership by purchasing 21,370 Class A shares, signaling internal confidence in the company’s AI-enabled ultrasound roadmap.
  • Next, we’ll examine how the Compass AI launch may influence Butterfly Network’s investment narrative and its recurring software revenue ambitions.

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Butterfly Network Investment Narrative Recap

To own Butterfly Network, you need to believe handheld, AI-enabled ultrasound can become a standard part of everyday clinical practice and support meaningful software-led revenue. The Midjourney partnership and Compass AI launch directly tie into that thesis, but the key near term catalyst remains converting large enterprise deals, while the biggest risk is that long sales cycles and ongoing losses continue to weigh on execution.

Among the recent announcements, Compass AI looks most relevant for investors, because it targets documentation and workflow bottlenecks that have limited point-of-care ultrasound adoption and billing. If Compass AI can gain traction across health systems, it may help address concerns about flat domestic revenue and weaker subscription renewals by deepening software usage and potentially lifting recurring revenue over time.

Yet investors should also be aware that Butterfly’s high R&D spend and continued operating losses mean the path to breakeven still depends on...

Read the full narrative on Butterfly Network (it's free!)

Butterfly Network's narrative projects $135.9 million revenue and $17.0 million earnings by 2028. This requires 15.8% yearly revenue growth and a $79.8 million earnings increase from -$62.8 million today.

Uncover how Butterfly Network's forecasts yield a $3.92 fair value, a 17% upside to its current price.

Exploring Other Perspectives

BFLY 1-Year Stock Price Chart
BFLY 1-Year Stock Price Chart

Nine members of the Simply Wall St Community currently see Butterfly’s fair value anywhere between US$0.89 and US$5.00, highlighting very different expectations. Against that backdrop, the Compass AI launch and the company’s continued operating losses give you concrete catalysts and risks to weigh as you consider these competing views.

Explore 9 other fair value estimates on Butterfly Network - why the stock might be worth less than half the current price!

Build Your Own Butterfly Network Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.