It is not a good idea to allow your baby to face outward in a stretchy wrap for several reasons.
Leg positioning: Holding your baby in an outward-facing position does not allow you to keep your baby’s legs supported like it does when they can be wrapped around your body. Instead, an outward position will cause your baby’s legs to dangle and put unnecessary pressure on their hip sockets.
Back pain: Carrying your baby in an outward position can cause back pain for you and your baby. Carrying your baby facing outward redistributes their weight awkwardly and can cause you to arch your back to compensate. It can cause your baby to arch their back due to positioning too, which can cause back pain and stress on your spine and your baby’s spine.
Overstimulation: When your baby faces your chest, they can rest their head on it. In an outward-facing hold, your baby cannot rest their head. This can cause them to become overstimulated and fussy.
Head and neck support: The U.S. Consumer Products Safety Commission has warned that babies should not be placed in forward-facing carriers until they have adequate head and neck control. But even if your baby is older, they cannot adequately support their head while asleep in an outward-facing position.