The significant miss in both earnings and revenue for Butterfly Network is likely to negatively impact investor sentiment in the short term. Historically, earnings misses can lead to a decrease in stock price. However, the company's past performance indicates a potential for recovery, as seen after last quarter's earnings beat which led to a 16.0% increase in share price. The confidence in this analysis is high due to the clear historical data provided, but the market's reaction can be unpredictable.