908 Devices Stock: Pure Play in Mini Mass Spectrometers

Butterfly Network (BFLY) is a company that we’ve liked ever since first writing about its handheld ultrasound device more than six years ago while reviewing some of the top AI startups in healthcare. While the technology is complicated, the concept is pretty simple: Shrink the capabilities of an ultrasound machine down to the size of a typical scanner used at the grocery store and pair it with a smartphone and machine-learning algorithms. Let the disruption begin. 

But though we liked the premise, the company’s decision to go public by merging with a special purpose acquisition company (SPAC) was something of a turn off. After the dust had settled, it was apparent that Butterfly Network overpromised on revenue, sending stock shares on a steep decline. The thesis is still sound – disrupting the market with a cheaper, idiot-proof piece of hardware – but our overall portfolio is already heavy on large medical device companies. In addition, the total addressable market (TAM) seems small and the competition pretty big. 

One person who is still bullish on Butterfly Network is Cathie Wood, the Moses of Ark Invest, an investment management firm that specializes in disruptive tech stocks. BFLY is currently the No. 18 largest holding in the ARK Genomic Revolution ETF (