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Blend Labs Sees Fluctuation Amid Updated Price Targets and Ownership Changes

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 9/7/2025, 12:13 pm ET 9/7/2025, 12:13 pm ET | 6 min 6 min read
Blend Labs Sees Fluctuation Amid Updated Price Targets and Ownership Changes Thumbnail

Blend Labs Inc. stocks have been trading up by 14.24 percent, driven by new strategic partnerships and tech innovations.

Technology industry expert:

Analyst sentiment – neutral

  1. Market Position & Fundamentals: Blend Labs exhibits significant financial distress evident from its unfavorable profitability metrics, such as a negative EBIT margin of -9.3% and a pretax profit margin of -136.8%. The company’s revenue of $162 million demonstrates a contraction, with three-year and five-year revenue growth rates of -22.2% and 31.02%, respectively. On the balance sheet, a negative book value per share (-$0.09) and return on assets of -52.86% further underscore operational inefficiencies and capital deployment challenges. Given a Price to Sales ratio of 7.21 and an enterprise value close to $957 million, the valuation appears unappealing amid declining margins and inadequate profitability.

  2. Technical Analysis & Trading Strategy: Recent price action on Blend Labs demonstrates a slightly bullish trend, with the stock advancing from $3.42 to a high of $4.17. However, a subsequent close at $4.1699 suggests resistance near the $4.20 level, hinting at potential retracement. Notably, the gradual increase in trading volume during the last rally phase enhances the credibility of this uptrend. A trading strategy focused on buying at retracements around $3.60-$3.70, provided the upward momentum holds, appears prudent. Monitoring for support at the $3.63 level, where a previous consolidation occurred, is recommended to manage downside risk effectively.

  3. Catalysts & Outlook: Despite recent reductions in price targets by UBS and Keefe Bruyette, Blend Labs maintains a neutral market position given its troubled financials and competitive landscape in Technology and Software & IT Services. The form 4 filings regarding changes in beneficial ownership suggest significant insider transactions which may provide hints towards future strategic directions. The broader sector outperforms Blend; thus, without substantive catalysts or operational improvements, the outlook remains constrained. Blend Labs is currently bounded by a resistance level of $4.20 and a potential support area near $3.50. Overall sentiment remains neutral given the lack of positive performance indicators.

  • Keefe Bruyette also reduced its target price for Blend Labs, setting it at $3.75 from $4, with a ‘Market Perform’ rating, suggesting steady, albeit tempered, expectations for performance.

  • Ownership changes reported recently indicate internal financial maneuvers, pointing towards strategic considerations in the corporate structure that investors might find noteworthy.

Candlestick Chart

Weekly Update Sep 01 – Sep 05, 2025: On Sunday, September 07, 2025 Blend Labs Inc. stock [NYSE: BLND] is trending up by 14.24%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

The financial landscape for Blend Labs is marked by some stark figures. As of the latest reports, key financial metrics reveal substantial negatives in profitability, with an EBIT margin at -9.3% and a gross margin sitting relatively healthy at 64.2%. These juxtaposed figures highlight efficiency struggles against its revenue generation capabilities.

Looking into Blend Labs’ recent stock performance, fluctuations are evident. Over the past few days, the stock saw a variance from an opening of $3.47 moving up to a peak of $4.17, eventually settling back down. This volatility reflects market reactions to the financial updates and analysts’ new price targets. The company’s significant financial challenges are further visible in their earnings reports, with an operating revenue of $31.52 million sharply contrasted by expenses totaling $36.14 million. Such tight financial pressure likely influences institutional perspectives, adjusting price targets as seen from UBS and Keefe Bruyette.

Moreover, Blend Labs faces a valuation conundrum, with a price-to-sales ratio starkly at 7.21 reflecting heightened expectations against a backdrop of significant financial strain, including net income from continuing operations totaling a negative $3.64 million. The cash flow scenario doesn’t paint a rosier picture, with financial operations underscoring strategic pressure as free cash flow remains in the negative realm. These factors point towards a company under financial duress with palpable short-term challenges, yet still holding potential through longer-term structural refinements.

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Conclusion

In summary, Blend Labs navigates a challenging financial period, marked by strategic recalibration as seen through recent price target adjustments by major financial entities like UBS and Keefe Bruyette. These changes underscore a cautious outlook amidst internal financial shifts, particularly noticeable in the alterations in beneficial ownership. The company’s stock performance mirrors the economic pressures it faces, with volatility reflecting trader sentiment shifts as the market absorbs these updates.

As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” This sentiment holds particularly true for Blend Labs as it traverses this complex landscape. The immediate outlook for Blend Labs remains mixed. While price adjustments by UBS and Keefe Bruyette suggest carefully managed expectations, Blend’s fundamental financial challenges adhere closely to traders’ vigilance. As the company maneuvers through ownership and structural changes, these dynamics will be critical in shaping Blend Labs’ trajectory, demanding a keen eye from market players aiming to capitalize on its evolving story.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”