Blend Labs Now Faces Potential Mortgage Industry Downturn On Rising Rates (Downgrade)

I'm downgrading Blend Labs to Sell due to mortgage industry headwinds and the moderate potential for disruption risk from GenAI-enabled competitors. BLND trades at a slight EV/Sales premium (3.4x) despite negative revenue growth estimates and a challenging demand outlook. Management is focused on cash preservation, operating profitability, and AI integration, but faces shareholder dilution and high CapEx relative to peers.