KE Holdings Inc. (BEKE) -2.84% Plunge on Analyst Downgrades, Sector Pressures

The share price fell to its lowest level since November 2025 today, with an intraday decline of 0.63%.

KE Holdings Inc. (NYSE: BEKE) has seen a three-day losing streak, with shares dropping 2.84% over the period, driven by a mix of analyst downgrades and broader sector pressures. Recent moves by Wall Street Zen, which cut its rating to “Sell,” and UBS Group, which revised to “Neutral” with a $19 price target, have amplified skepticism about near-term prospects. Institutional activity has been mixed, with some firms adding to positions in Q3 2025, but these gains have yet to counterbalance declining investor confidence. The stock’s 52-week low reached on January 2 reflects a broader selloff amid concerns over profitability and valuation metrics, despite modest earnings beats in recent quarters.

Financials highlight a challenging environment for the real estate services provider. While Q3 2025 gross transaction value rose 18.4% year-over-year, net profit margins contracted to 3.36%, and revenue missed estimates by 2.04%. A PEG ratio of 3.00 suggests the stock is overvalued relative to earnings growth, compounding investor caution. Broader macroeconomic headwinds, including regulatory scrutiny and a slowing Chinese economy, continue to weigh on the sector. Despite operational expansions and cost-cutting efforts, BEKE’s ability to stabilize its valuation and deliver consistent profitability remains critical for reversing its current downtrend.