BFLY Stock Surges on Midjourney Ultrasound Deal Hopes

Butterfly Network Inc. stock is trading up by 7.7 percent, driven by positive sentiment for its imaging technology. This follows a co-development and licensing deal with Midjourney Medical. Midjourney Medical launched a full-body tomographic ultrasound scanner which embeds Butterfly Network's Ultrasound-on-Chip modules. This deal could deliver up to $74 million over five years. The new Midjourney scanner uses 40 Butterfly Ultrasound-on-Chip modules per system. Future versions are expected to use even more. Shares of BFLY recently dropped 18.8% to $7.22 in a single session, despite these partnership headlines. An insider or major holder recently changed their beneficial ownership of Butterfly Network securities, a signal traders often track. The company's stock has seen significant volatility, including a rise from about $4.5 to $8.9, followed by a sharp pullback. Butterfly Network booked about $97.6 million in revenue over the last year with a 49.2% gross margin. However, operating margins are negative, and cash burn is present. The company holds roughly $142 million in cash with minimal debt. This makes BFLY a high-risk, high-reward story for traders.