Is Butterfly Network, Inc. (BFLY) the Best Multibagger Penny Stock to Buy According to Billionaires?
We recently published a list of . In this article, we are going to take a look at where Butterfly Network, Inc. (NYSE:BFLY) stands against other best multibagger penny stocks to buy according to billionaires.
Penny stocks always seem like bargains for gaining exposure to some of the fastest-growing segments or spectacles, especially when popular stocks cost hundreds or thousands of dollars. Given that some cost as little as $2, they can be tempting for growing money quickly without spending much. While it's possible to achieve significant returns while investing in companies with depressed stock prices, caution is always of utmost importance.
Low-priced stocks come with elevated levels of volatility as reduced liquidity makes them speculative, high-risk investments. Over the years, massive penny-stock scams have cheated thousands of investors out of millions of dollars, even as others have generated a fortune out of them. 2024 was one such year where investors betting on penny stocks generated a fortune as the overall stock market remained bullish. Explosive gains came into play as the equity outlook improved on expectations that the US Federal Reserve would cut interest rates.
Amid the current correction in the equity market after two years of blockbuster gains, penny stocks are increasingly becoming popular owing to their depressed valuations. President Donald Trump's eldest son, Donald Trump Jr., and Lara Trump have already joined the fray in acquiring significant stakes in a conservative radio network, affirming renewed interest in thinly traded companies.
Nevertheless, in the face of rising trade tensions and the lowest consumer confidence seen in almost three years, US markets have faced significant fluctuations. Yet, despite these obstacles, the idea of penny stocks continues to hold relevance as investors hunt for low-cost options with potential for growth. Often linked with smaller or emerging companies, these stocks can present considerable upside when supported by robust financials and sound fundamentals.
It is possible to realize impressive returns by investing money into young firms with small market valuations or undervalued stock prices. That is especially the case at a time when President Trump is increasingly pushing for lower interest rates in the US. Like large-cap stocks, penny stocks tend to do well in low-interest rates environments as acquiring capital to accelerate operations and generate shareholder value becomes easier and more affordable for new and emerging companies.
For this article, we used a stock screener first to identify stocks priced under $5 that have posted huge gains over the past year (at least 100%). From the obtained dataset, we selected penny stocks with the highest percentage gains in stock performance over the past year (as of April 21). The list is ranked based on the number of billionaires that hold stakes in them, the data for which we sourced from Insider Monkey's proprietary database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A doctor looking at a ultrasound system with a Compass software interface, demonstrating the sophistication of the device.Butterfly Network, Inc. (NYSE:BFLY) is a healthcare company that develops and markets affordable, accessible medical imaging tools. Its core technology is the 'Ultrasound-on-Chip™' enabling the creation of a single-probe, whole-body ultrasound system. The stock has rallied by 225% over the past year amid growing expectations that robust revenue growth will propel it to profitability. On March 17, William Blair initiated coverage of the stock with an Outperform recommendation.
Butterfly Network, Inc. (NYSE:BFLY) delivered record revenue of $22.4 million in Q4 2024, representing 35% year-over-year growth. Butterfly Network's transition to the more profitable iQ3 device was the catalyst behind product revenue increasing 45% year-over-year. It also successfully reduced its net loss by 59% to $18.1 million. Butterfly Network has laid up strategic plans to meet long-term financial goals. These include achieving a $500 million revenue goal in five years and cash flow breakeven by 2027.
One of these strategic moves is establishing a new company, Octiv, to market ultrasound technology in new industries. With $92.8 million in cash, the company remains in a strong financial position to invest in key growth strategies.
Overall, BFLY ranks 6th on our list of best multibagger penny stocks to buy according to billionaires. While we acknowledge the potential of BFLY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BFLY but that trades at less than 5 times its earnings check out our report about the .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
11 minutes ago
- Bloomberg
Elon Musk and Donald Trump May Bury the Hatchet
Good morning. Elon Musk and Donald Trump may be coming to their senses. 'America First' is turning into 'America the Avoidable.' And not even the legacy of Trump's mother can save Harris Tweed. Listen to the day's top stories. Keep calm and carry on. Signs are Donald Trump and Elon Musk may be heading toward a detente, but nothing is for certain quite yet. Musk has signaled he's open to cooling tensions and backed off on a threat to decommission SpaceX's Dragon spacecraft. White House aides have scheduled a call with the Tesla CEO to broker peace, according to Politico. Here's a timeline of their very public spat.
Yahoo
13 minutes ago
- Yahoo
Carmakers Use Stealth Price Hikes to Cope With Trump's Tariffs
(Bloomberg) — Car buyers racing to get ahead of President Donald Trump's tariffs face an uncomfortable truth — the trade war is already boosting US auto prices, often in ways nearly invisible to consumers. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The Global Struggle to Build Safer Cars The sticker price on a particular make and model may not have changed, at least not yet. But automakers have been quietly cutting rebates and limiting cheap financing deals, adding hundreds of dollars to buyers' monthly payments even as the companies say they're holding the line on pricing. Several have boosted delivery charges — a fee everyone must pay when buying a new vehicle — by $40 to $400 dollars, according to automotive researcher Inc. Some dealers, meanwhile, have decided to charge more for the cars already on their lots, knowing it will cost more to replace them. These stealth increases could help automakers cope with Trump's 25% levies on imported vehicles without risking his wrath, particularly once cars that landed in American ports after the tariffs were imposed finally start reaching showrooms this month. They'd all like to avoid the social-media fury he unleashed on Walmart Inc. (WMT) after the retail giant said the trade war had forced it to raise prices. But the auto industry's subtle price hikes are already having an effect. The average sale price for a new car jumped 2.5% in April, the steepest monthly increase in five years, according to the Kelley Blue Book car buying guide. The average reached $48,699, almost a record. Incentives, which once knocked 10% off the price, fell to 6.7%. Zero-percent financing deals — a key come-on in this age of high interest rates — dropped in April to their lowest rate since 2019, according to researcher Cox Automotive. And at some point, car buyers may balk. 'On the consumer side, they're seeing several thousand dollars of actual-experience price increase, whereas the factory is saying, 'No man, we didn't raise prices at all,'' said Morris Smith III, a Ford (F) dealer in Kansas. 'Stealth is a good word for it.' While the steps have helped car companies avoid outright price hikes until now, those are coming. Ford Motor Co. told dealers it will raise sticker prices as much as $2,000 on three models it builds in Mexico — the Maverick pickup, the Bronco Sport and the electric Mustang Mach-E. Japan's Subaru Corp. (FUJHY) is boosting prices $1,000 to $2,000 to help offset tariff costs, according to people familiar with the matter. Hyundai Motor Co. (HYMLF) is considering a 1% increase to the suggested retail price of every model in its lineup, a hike of at least several hundred dollars, Bloomberg reported last week. The Korean company also is likely to jack up shipping charges and fees for options such as floor mats and roof rails, which could turn off some inflation-weary consumers. Other automakers are hiking prices on their new 2026 models coming this summer and fall, but attributing the increases to the model-year changeover rather than tariffs. 'With a new product, having a higher price is not 'raising price' in the game of semantics,' said John Murphy, an analyst with Bank of America Corp. (BAC), at an event in Detroit Wednesday. 'So they don't really enrage certain folks that might come down on them for raising price.' All of these changes — the sticker price increases, reduced incentives and higher fees — will become more visible to car shoppers in the coming weeks. Since the 25% levies went into effect on April 3, dealers have been selling from a shrinking stockpile of pre-tariff cars. (There's an exemption for cars that comply with the terms of the US, Mexico and Canada free trade agreement, which only face an import tax on their non-American content.) That process is nearly done, and by late June, dealers will face the new reality of lots filled with cars that cost more to bring into the country. 'There's nothing they can do to prevent this from having an impact,' said Sean Tucker, editor of Kelley Blue Book. 'There's not a single cliff, but the date they run out of those pre-tariff cars, that's when you're going to see the most dramatic change.' Sales may suffer as a result. A recent survey from found that 65% of new car buyers would walk away if monthly payments rose just 5% in a market where car prices are already near historic highs. An Edmunds survey released Thursday found three-quarters of car buyers said tariffs would be a factor in their purchasing decisions. Shoppers are already not getting the deals that were commonplace just months ago. Take the Ford F-150 pickup, America's top-selling vehicle. Earlier this year, an F-150 could be had with a 1.9% interest rate on a 6-year loan, Smith, the Kansas dealer, said. Then, Ford only offered that rate for certain, higher-priced trim levels of the truck. Now, 1.9% financing is offered only on three-year loans, which are rare.'The dealers I'm talking to have every expectation that in the next 90 days to six months, there will be pretty significant price increases across the board,' Smith said, 'assuming something doesn't happen with the tariffs.' Some dealers are preparing for that day of reckoning by making as much money off their pre-tariff inventory as they can, charging over the sticker price. 'Dealers set final prices, and they're dealing with the knowledge that for every car they sell, it's going to cost them more to replace it than it used to,' Tucker said. Automakers might not just raise prices on the cars they import. They may choose to increase the costs of their more expensive, US-made models so the full weight of the tariffs doesn't fall on some of the cheaper vehicles they make overseas. General Motors Co. (GM), for example, imports more than 400,000 cars each year from its factories in South Korea, including the $20,500 Chevrolet Trax. 'GM doesn't necessarily have to raise the price of the Chevy Trax by 25% in order to pay a 25% tariff on the Chevy Trax, because those buyers are the most price-sensitive,' Tucker said. 'So maybe instead, you bump up the price of the Silverado pickup in order to pay the tariff on the Trax. But GM isn't going to put that on a window sticker.' Automakers may also drop the most affordable trims of their vehicles. Stellantis NV (STLA (STLA) decided to pause making the entry-level version of its electric muscle car, the Charger Daytona R/T, because of tariff risks, the company confirmed in May. The R/T, built at an assembly plant in Windsor, Canada, currently starts at $59,595, while the more powerful Scat Pack trim starts at $73,190. Cox forecasts tariffs could raise the price on imported cars by 10% to 15%, further exacerbating an affordability crisis. But those increases aren't likely to come in big chunks, instead phasing in slowly and quietly so as not to scare off customers, said Erin Keating, Cox's senior director of economics and industry insights. Still, some potential buyers will walk away. Domestic sales could fall from 16 million in 2024 to 15.6 million this year, according to Cox. The outlook from consumer analysis company J.D. Power is even bleaker, with tariffs predicted to cut US auto sales by about 1.1 million vehicles annually, or roughly 8%. Automakers are scaling back production in anticipation. More than a half-million fewer cars will be built in North America this year than in 2024, according to researcher AutoForecast Solutions. 'By enacting tariffs on Canadian and Mexican parts and vehicles, it slows the whole workings of this North American machine making vehicles,' said Sam Fiorani, AutoForecast's vice president of global vehicle forecasting. 'The vehicles that are being built will cost more, raising the price of vehicles and lowering the demand for them. It's all interconnected.' —With assistance from Chester Dawson. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
Bloomberg
14 minutes ago
- Bloomberg
UK Weighs Lifting Retail Ban on Crypto Exchange-Traded Products
The UK's financial regulator proposed lifting its ban on retail investors buying exchange-traded products tied to cryptocurrencies, seeking to bolster competitiveness against a resurgent US crypto market under Donald Trump. The Financial Conduct Authority said the change would mean existing exchange-traded notes tied to tokens like Bitcoin and Ether can be sold to retail buyers, as long as they're traded on an FCA-approved exchange. The regulator permitted such products to be traded on venues like the London Stock Exchange last year, but only among professional investors.
