Butterfly Network Outlook: A Weak Technical Picture Amid Mixed Fundamentals

Generated by AI AgentData DriverReviewed byAInvest News Editorial Team
Tuesday, Dec 2, 2025 8:08 pm ET2min read
Aime RobotAime Summary

- Butterfly Network's stock rose 42.13% but faces a weak technical outlook with 6/8 bearish indicators, advising caution.

- Mixed fundamentals include poor profitability (NPM -1.58%) and weak asset returns (-0.21% ROA), despite retail investor inflows.

- Analyst ratings are inconsistent, with only a lone "Strong Buy" from Craig-Hallum (0% historical accuracy), highlighting lack of consensus.

- Large capital outflows (-48.92% inflow ratio) contrast with retail optimism, signaling potential near-term volatility and correction risks.

htmlMarket SnapshotHeadline:

is underperforming in the short term amid a weak technical setup. The stock is currently trading with a 42.13% rise, but the technical score is 3.06, suggesting a weak trend and a recommendation to avoid.
News Highlights Stanford Health Care to Get $424.9 Million From Municipal Bond Sale: While this news is positive for the broader healthcare sector, it has little direct impact on Butterfly Network. The investment is focused on infrastructure and debt management, not innovation or competition in medical imaging. Health Care Up on Defensive Bets: The health-care sector is seeing a rise as traders seek defensive positions amid tariff uncertainty. However, Butterfly Network has not benefited as much as peers, and its fundamentals remain mixed. Clinical Asset Management Trends Reshaping Health Care in 2025: Innovations in asset management are transforming the industry, but Butterfly Network's position in this space remains unclear. Investors may want to monitor whether the company is adapting its strategies accordingly.Analyst Views & FundamentalsAverage Rating Score (Simple Mean): 5.00 Weighted Rating Score (Performance-Weighted): 0.00 Rating Consistency: There is a wide dispersion in analyst ratings. Currently, the only rating is a "Strong Buy" from Craig-Hallum, but the historical performance of this analyst is poor, with a 0.00% win rate and a -3.09% average return over one prediction.Alignment with Price Trend: Despite the stock rising 42.13% in the current period, the analysts remain pessimistic overall. The weighted score is zero, showing a mismatch between market movement and analyst expectations.Key Fundamental Factors Price-to-Sales (PS): 21.82 (value: 21.81775240495137) — Internal diagnostic score: 3 (Weak) EV/EBIT: -7.60 (value: -7.595160806590096) — Internal diagnostic score: 2 (Weak) Gross Profit Margin (GPM): 0.68% (value: 0.006814510403515508) — Internal diagnostic score: 2 (Weak) ROA (Return on Assets): -0.21% (value: -0.0002130054275487755) — Internal diagnostic score: 1 (Poor) Cash to Usage: 52.88% (value: 0.5287869045424209) — Internal diagnostic score: 2 (Average) Operating Cash Flow to Assets (CFOA): -0.75% (value: -0.000749339659726484) — Internal diagnostic score: 1 (Poor) Net Profit Margin (NPM): -1.58% (value: -1.5808553213271908) — Internal diagnostic score: 1 (Poor) Cash to Market Value (Cash-MV): 43.79% (value: 0.4379273943801173) — Internal diagnostic score: 2 (Average)Money-Flow TrendsLarge capital flows are showing a negative trend, while retail investors (small-cap flows) are showing a positive trend. Specifically: Small inflow ratio: 50.08% — positive trend Medium inflow ratio: 49.17% — negative trend Large inflow ratio: 48.92% — negative trend Extra-large inflow ratio: 49.50% — negative trendDespite the retail positivity, big money is clearly stepping back, which could lead to volatility or a correction in the near term.Key Technical SignalsButterfly Network’s technical outlook is weak, with a total of 8 indicators analyzed over the last 5 days. Here are the highlights:Internal Diagnostic Scores (0-10) RSI Overbought: 1 — Biased bearish WR Overbought: 1 — Biased bearish Dark Cloud Cover: 1 — Biased bearish Bullish Harami Cross: 8.17 — Strong bullish Bearish Engulfing: 7.11 — Bullish bias Long Lower Shadow: 1 — Biased bearishRecent Chart Patterns 2025-11-26: Bullish Harami Cross and Bearish Engulfing — Sign of mixed signals and volatility 2025-11-25: WR Overbought and Long Lower Shadow — Biased bearish 2025-11-24: WR Overbought and RSI Overbought — Strong bearish signalsKey Insight: The technical outlook is heavily bearish, with 6 out of 8 indicators pointing downward. The market is in a volatile state with an unclear direction. Investors are advised to avoid or proceed with caution.ConclusionButterfly Network is currently in a technical and fundamental gray zone. While the fundamentals show some mixed signals, the technical side is clearly bearish. With analysts showing little confidence and big money moving away, now may not be the best time to enter or hold a position. Consider waiting for a clearer trend or better confirmation from both technical and fundamental indicators.

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