We recently compiled a list of the 12 Best Get Rich Fast Stocks To Buy Now. In this article, we are going to take a look at where Butterfly Network, Inc. (NYSE:BFLY) stands against the other get rich fast stocks.
Investing in penny stocks—typically defined as shares trading below $5—can be alluring due to their potential for rapid financial gains. These low-priced stocks often represent small companies with the possibility of significant price fluctuations, offering investors the chance to realize substantial profits in a short period. However, it’s essential to understand both the opportunities and inherent risks associated with penny stock trading. Penny stocks are known for their volatility, which can lead to swift and substantial price movements. For instance, certain stocks have experienced notable upward trends, presenting opportunities for quick profits. Technical analysis of these stocks often reveals bullish patterns, such as bull flags and inverse head and shoulders, indicating potential upward momentum. Investors who can accurately identify these patterns and time their trades may capitalize on these price movements.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The low price point of penny stocks makes them accessible to investors with limited capital. Purchasing shares at a fraction of the cost of more established companies allows individuals to enter the stock market without significant financial commitment. This accessibility can be particularly appealing to novice investors looking to explore stock trading. While the allure of quick profits exists, experts advise caution. Last year, the Financial Times highlighted concerns over the surge in penny stock trading, noting that sub-dollar stocks accounted for 14% of all US trading volume, nearly double that of the previous year. This surge includes companies with questionable operations, leading to increased scrutiny and calls for tighter regulations. Doug Cifu, CEO of market-maker Virtu, has urged the Securities and Exchange Commission (SEC) to tighten listing standards and require more disclosures to protect investors from potential fraud and manipulation.
Similarly, The Wall Street Journal reported in August 2024 that Nasdaq was implementing new regulations to eliminate penny stocks trading under $1, aiming to remove risky and unstable companies from the exchange. These changes are intended to protect investors from companies exhibiting signs of significant financial or operational distress. Investing in penny stocks carries significant risks. The volatility that offers the potential for rapid gains can also lead to substantial losses. Additionally, the lack of liquidity in penny stocks can make it challenging to execute trades promptly, potentially exacerbating losses if the market moves unfavorably. The prevalence of fraud and manipulation in the penny stock market further underscores the need for thorough research and due diligence before investing.
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The companies that are priced around $5 per share or under and have a beta of greater than 2 were shortlisted. The top thirty were then selected and the twelve best ranked according to hedge fund sentiment. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A doctor looking at a ultrasound system with a Compass software interface, demonstrating the sophistication of the device.
Butterfly Network, Inc. (NYSE:BFLY)
Number of Hedge Fund Holders: 26
Butterfly Network, Inc. (NYSE:BFLY) develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. The company reported total revenue of $20.6 million in the third quarter of 2024, a 33% increase from $15.4 million in the same quarter of 2023. In January, the company announced early results from a key study by Rutgers Robert Wood Johnson Medical School and Robert Wood Johnson University Hospital. The study shows that point-of-care ultrasound (POCUS) improves patient outcomes and hospital efficiency. The study was a prospective, head-to-head comparison between hospital physicians using Butterfly iQ+ and iQ3 POCUS devices and those not using POCUS. The results revealed a significant reduction in both hospital length of stay (LOS) and overall healthcare costs.
Overall BFLY ranks 5th on our list of the get rich fast stocks to buy now. While we acknowledge the potential of BFLY as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than BFLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
