Butterfly Network Outlook: Volatility and Mixed Signals Cloud Short-Term Prospects

1. Market Snapshot

Takeaway: Butterfly Network is in a volatile, weak technical phase with bearish signals outweighing the bullish. With a technical score of 4.25 (out of 10), the stock is showing signs of instability, and traders are advised to approach with caution.

1. News Highlights

Stanford Health Care's $424.9 million bond sale highlights ongoing capital activity in the healthcare sector, suggesting broader industry demand for funding. However, this does not directly impact Butterfly Network's operations. Trump’s tariff announcements continue to create uncertainty in the market. As a result, defensive sectors like healthcare have seen mixed performance, with Butterfly Network being one of the affected stocks. A recent clinical asset management report underlines key industry trends such as technological innovation and regulatory pressures. Butterfly Network, being a tech-driven healthcare firm, could be both challenged and benefited by such trends.

1. Analyst Views & Fundamentals

The analyst consensus is highly mixed, with only 1 analyst (Chase Knickerbocker from Craig-Hallum) issuing a “Strong Buy” rating in the past 20 days. However, the historical performance of this analyst is poor, with a 0.00% win rate and -3.09% average return. The simple average rating is 5.00, while the performance-weighted rating is 0.00. This stark discrepancy shows that while the rating appears neutral on the surface, the market has not rewarded this advice historically.

Fundamental factors are mixed but generally leaning neutral to negative:

EV/EBIT: -7.60 (Internal diagnostic score: 2.00) – Suggests a high enterprise value relative to earnings.

PE: -13.80 (Internal diagnostic score: 2.00) – Priced below its earnings, raising value questions.

ROA: -0.21 (Internal diagnostic score: 1.00) – Indicates weak return on assets.

Profit-MV: 0.48 (Internal diagnostic score: 2.00) – Mixed signal on profit vs. market value.

CFOA: -0.07 (Internal diagnostic score: 1.00) – Weak cash flow from operations.

NPM: -158.09% (Internal diagnostic score: 1.00) – Indicates a sharp decline in net profit margin.

While some factors like Cash-UP (0.52) and Profit-MV (0.48) show slight positive momentum, the overall fundamentals remain weak, which clashes with the recent price rise of 12.75% in the short term.

1. Money-Flow Trends

The money-flow analysis reveals a complex picture. While small retail investors are showing positive inflow trends, large institutional investors are overwhelmingly negative. The fund-flow score is 7.85 (out of 10), which is considered “good,” but it is driven largely by retail participation. The inflow ratios show that:

Small investors have a 50.50% inflow ratio.

Medium and large investors show 47.43% and 48.48% inflow ratios respectively, but the trends are all negative.

This divergence suggests that while retail enthusiasm is present, institutional skepticism dominates — a red flag for momentum traders.

1. Key Technical Signals

Technical indicators are leaning bearish, with 3 negative vs. 1 bullish signals in the past 5 days:

Bullish Harami Cross (Internal diagnostic score: 8.23) – A strong reversal signal.

MACD Golden Cross (Internal diagnostic score: 2.51) – Weak and historically negative signal.

Dark Cloud Cover (Internal diagnostic score: 1.00) – Strong bearish signal.

Long Lower Shadow (Internal diagnostic score: 1.00) – Also bearish, suggesting rejection of higher prices.

Recent chart patterns from the week of Dec 10 to 17, 2025, include:

Dec 17: Bearish Engulfing, Bullish Harami Cross, and Dark Cloud Cover — a volatile mix.

Dec 15: MACD Golden Cross — a weak bullish signal.

Dec 16: Long Lower Shadow — bearish confirmation.

The overall technical trend is weak, with volatility high and direction unclear. Investors are urged to be cautious given the bearish dominance of signals.

1. Conclusion

Actionable takeaway: Consider waiting for a pull-back before committing new capital to Butterfly Network. While the stock has shown a recent price rise of 12.75%, it is supported by weak fundamentals and bearish technical signals. The technical score of 4.25 and analyst rating divergence suggest caution. Watch for institutional sentiment shifts and key earnings updates to gain more clarity on the stock’s direction.