Butterfly Network Outlook: Weak Technicals and Mixed Fundamentals Amid Health-Care Shifts

Market SnapshotHeadline Takeaway: Butterfly Network (BFLY.N) faces weak technical signals and mixed fundamentals, while recent health-care news highlights regulatory and market shifts.

News Highlights

Stanford Health Care Bond Sale: Stanford Health Care is set to receive $424.9 million from a municipal bond sale, which could influence investor sentiment in the broader health-care sector. This may indirectly affect companies like Butterfly Network if the sector sees renewed attention or investment.

Tariff Uncertainty: Ongoing discussions about Trump’s tariff policy continue to create uncertainty, particularly in sectors like health care and manufacturing. Tariff changes could affect Butterfly Network's operations, especially if it relies on global supply chains or international sales.

Clinical Asset Trends: A recent industry report highlights major trends reshaping health care in 2025, including technological innovation and regulatory challenges. This could impact Butterfly Network’s market positioning, especially as it seeks to expand its diagnostic imaging tools in new markets.

Analyst Views & Fundamentals

Butterfly Network has received one analyst rating from Craig-Hallum’s Chase Knickerbocker, who assigned a "Strong Buy" in early July 2025. However, the simple average rating is 5.00, while the historical performance-weighted rating is 0.00, indicating that the analyst’s past predictions have not led to favorable returns for investors (historical average return: -3.09%).

There’s also significant dispersion in expectations, as the current price trend is rising by 19.37%, while the market’s overall expectations appear pessimistic. This mismatch between price movement and analyst sentiment may signal caution for investors.

On the fundamental side, here are key factors and their internal diagnostic scores (0-10):

EV/EBIT: -7.59% (score: 1.00)Profit-Margin to Market Value (Profit-MV): 44.95% (score: 0.80)Net Profit Margin (NPM): -158.09% (score: 0.80)Return on Assets (ROA): -0.21% (score: 0.80)Cash to Market Value (Cash-MV): 44.29% (score: 0.80)Earnings per Share (PE): -138.01% (score: 0.80)Gross Profit Margin (GPM): -17.48% (score: 0.80)

The mixed fundamental scores suggest that while some metrics like Cash-MV appear relatively strong, most fundamentals are weak or deteriorating, aligning with the bearish technical outlook.

Money-Flow Trends

Despite recent price volatility, fund-flow patterns for Butterfly Network show negative trends across all sizes of institutional flows. The overall inflow ratio is 0.493, meaning there's a slight net outflow. Larger institutional money is also withdrawing, with a block inflow ratio of 0.493, suggesting that big investors are cautious or bearish on the stock's near-term prospects.

Small and large institutional flows are both trending negatively, with inflow ratios of 0.499 and 0.488 respectively. This points to a broader retreat in investor confidence, despite some retail investor activity. For investors, this could signal a strong bearish signal from institutional capital, reinforcing the technical case for caution.

Key Technical Signals

Technically, Butterfly Network is in a very weak position, with an internal diagnostic score of 1.76. There are 4 bearish indicators and 0 bullish ones, making it a stock to potentially avoid at the moment.

WR Overbought (Score: 1.00): The stock is in overbought territory, but historical performance has shown poor returns, averaging -6.31% post-signal.

MACD Golden Cross (Score: 1.29): This is a generally bullish signal, but in this case, it appears to be misleading or weak, with an average return of -1.75%.

Long Upper Shadow (Score: 2.19): This pattern suggests indecision in the market, with a modest win rate of 43.48%.

Over the past 5 days, several key patterns have appeared:

2025-11-19: WR Overbought + Long Upper Shadow2025-11-21: WR Overbought + MACD Golden Cross2025-11-18 & 2025-11-17: WR Oversold appeared twice, suggesting some temporary buying interest but not enough to reverse the trend.

The overall trend is bearish, with no strong reversal signs currently forming on the chart.

Conclusion

Investors in Butterfly Network (BFLY.N) should consider avoiding or trimming positions given the weak technicals, mixed fundamentals, and negative money-flow trends. The internal diagnostic technical score of 1.76 and the lack of bullish signals make this a high-risk, low-reward scenario at the moment. While the health-care sector remains in flux, Butterfly Network seems to be underperforming compared to broader trends.

For now, it's wise to wait for a clearer reversal signal before initiating new positions, and closely monitor any upcoming news that could shift sentiment in the sector.