10 Most Volatile Stocks Under $3 For Day Trading

3. Butterfly Network, Inc. (NYSE:BFLY)

Number of Hedge Fund Holders: 26

Butterfly Network, Inc. (NYSE:BFLY) is a digital health company that focuses on revolutionizing medical imaging through its handheld ultrasound technology. It develops the Butterfly iQ, a portable, pocket-sized ultrasound device that connects to smartphones and provides real-time imaging for a variety of medical applications. The company’s technology uses a single, advanced semiconductor chip for imaging, which reduces cost and complexity compared to traditional ultrasound systems. BFLY offers its products to healthcare providers, including hospitals, clinics, and individual practitioners, with a focus on improving diagnostic accessibility and efficiency. Revenue is generated through device sales, subscriptions, and cloud-based services. The US-based company ranked first on our recent list of 10 Hot Penny Stocks to Buy Now.

Butterfly Network, Inc. (NYSE:BFLY) delivered strong financial performance in 2024 with revenue of $82.1 million, representing 25% top-line growth, while improving adjusted EBITDA by 42% to a loss of $38.9 million. The launch of iQ3 was notably successful, representing 50% of overall 2024 sales and units and 58% of Pro revenue, delivering higher ASPs than their second-generation device. The company has expanded its market presence with doctors who previously hesitated to choose Butterfly now adopting iQ3, existing users upgrading, and new users trading in competitive devices. The company strengthened its financial position through a follow-on offering in late January 2025, raising $81.7 million to provide a bridge to cash flow independence.

Looking forward, Butterfly Network, Inc. (NYSE:BFLY) has provided 2025 revenue guidance of $96 million to $100 million, representing approximately 20% growth, with an adjusted EBITDA loss of $37 million to $42 million. The company is advancing strategic initiatives including Octiv partnerships, with five partners now signed including Sonic Incytes, and the HomeCare business which is showing promising early results in pilot programs. The company is focusing on scaling in 2025 with planned software improvements to enhance data management workflows, expand EMR integrations, and make data management more valuable for smaller customers. With an equity beta of 2.55, BFLY is one of the most volatile stocks under $3 for day trading.