What Happened to Owlet?

Owlet was founded in 2012 and became known for its Smart Sock, a wearable baby monitor that tracked an infant's heart rate and oxygen levels. Parents loved the peace of mind, and the product generated strong consumer demand. The company merged with Sandbridge Acquisition Corp in July 2021.

The SPAC presentation painted Owlet as a digital health platform that would expand beyond monitoring into telehealth and pediatric wellness. Revenue projections were aggressive, assuming the FDA would allow continued unregulated sales.

That assumption proved fatal. In October 2021 — just months after the SPAC merger — the FDA issued a warning letter to Owlet, stating the Smart Sock was an unauthorized medical device. Owlet was forced to stop selling the original sock and redesign it as a wellness product rather than a medical monitor, removing the core health-tracking features that made it popular.

The redesigned "Dream Sock" was less compelling to parents, and sales dropped. Owlet attempted to obtain FDA clearance for a medical version but the process was slow and expensive. The stock crashed over 95% as the company's core product was effectively neutered by regulation.