Butterfly Network
🧟 ZombieTrust Size
$604M
Peak Price
$29.19
Current Price
$0.80
Return
-92.0%
Peak Market Cap
$8.0B
What Happened
Medical device company making handheld ultrasound devices. Bill Gates-backed. Stock crashed 97% as hospital adoption was far slower than projected.
Butterfly Network merged with Longview Acquisition Corp in February 2021. The company makes the Butterfly iQ — a handheld, iPhone-connected ultrasound device that costs $2,000 vs $100K+ for traditional machines. Bill Gates invested. The vision was democratizing medical imaging. But hospital procurement cycles are long, FDA regulations complex, and the device is supplementary rather than replacement technology. Revenue growth stalled at ~$70M while the company burned $100M+ annually. Stock crashed from $29 to under $1.
Projections vs. Reality
Projected Revenue
$500M
What they told investors
Actual Revenue
$72M
What actually happened
Hype-to-Reality Ratio: 14.0x
Key People
Jonathan Rothberg
Founder
Serial biotech entrepreneur, $1B+ net worth from prior exits
Todd Fruchterman
CEO
Appointed 2022 to stabilize operations
Timeline
2020-11
SPAC merger announced
2021-02
Merger completed
2021-02
Stock peaks at $29.19
2022-08
New CEO appointed
2024-01
Stock under $1, delisting warnings
🔀 Reverse Stock Split
Reverse split ratio: 1:20. Reverse splits are used to avoid delisting but destroy shareholder value through the illusion of a higher stock price.
⚖️ Legal Actions
• Class action lawsuit filed by shareholders
📄 SEC Filings
View all EDGAR filings for Butterfly Network
Risk Scores
Dilution Score
70/100
Insider Profit Index
62/100
Hype-to-Reality Ratio
14.0x
Projected ÷ actual revenue