Butterfly Network stock jumps on Midjourney Scanner unveiling

Investing.com -- Butterfly Network (NYSE: BFLY) shares rose 17% Thursday morning following Midjourney's announcement of the Midjourney Scanner, which uses BFLY's Ultrasound-on-Chip technology.

Midjourney hosted an event in San Francisco to unveil its first healthcare hardware initiative, introducing a new division called Midjourney Medical and the Midjourney Scanner. The imaging platform aims to transform ultrasound into a large-scale computational tomography imaging infrastructure using Butterfly's licensed semiconductor-based Ultrasound-on-Chip technology.

The Midjourney Scanner leverages hundreds of thousands of ultrasonic elements, advanced reconstruction algorithms, and hyperscale computing resources to enable full-body ultrasonic computational tomography. According to details shared in a video posted by Midjourney, the platform is designed to generate high-resolution 3D full-body scans in approximately one minute.

Midjourney plans to open a flagship spa in San Francisco that will house the first Midjourney Scanner, suggesting a consumer-focused commercial strategy offering full-body scanning as part of a personal health and wellness retail service. The company is reportedly developing four hardware products, including the scanner, with two handheld devices and two machine systems.

TD Cowen analyst Joshua Jennings commented that the Midjourney Scanner unveiling highlights the potentially underappreciated value of BFLY's Ultrasound-on-Chip platform beyond handheld ultrasound imaging. The collaboration should validate BFLY Embedded and the semiconductor technology as a licensable infrastructure capable of enabling entirely new imaging platforms, creating opportunities for licensing revenue, future chip sales, and revenue sharing.

Butterfly Network CEO Joe DeVivo, CFO John Doherty, and SVP Innovation David Horsley are scheduled to participate in a TD Cowen conference call Thursday at noon ET to discuss the initiative and its impact on BFLY's business model.

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