Stockchase Opinions

Stockchase Insights Butterfly Network BFLY-N RISKY May 05, 2023

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

BFLY is involved in medical imaging systems where one can connect an ultrasound device to a phone and provide ultrasounds. It is a $432M company with expected top line growth of 20%+ expected for the next few years, although it is not profitable, and is not expected to be profitable for at least a few years. Its balance sheet is decent, and it has $237.8M in cash. It does not generate free cash flow and mostly issues shares to fund its operations. We would view it as a higher-risk company overall. 
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COMMENT
He knew a doctor he liked BFLY's product, so he thought the stock could be a hit, but the company arrived against too much competition. At least wait for the current stock selling to end.