Backblaze (NASDAQ:BLZE) Shares Down 9.8% – Here’s Why

Backblaze, Inc. (NASDAQ:BLZE)’s stock price dropped 9.8% during mid-day trading on Wednesday . The stock traded as low as $17.75 and last traded at $17.85. 902,520 shares changed hands during trading, a decline of 55% from the average daily volume of 2,021,267 shares. The stock had previously closed at $19.79.

Key Backblaze News

Here are the key news stories impacting Backblaze this week:

• Positive Sentiment: Strong Q2 results: Backblaze reported adjusted EPS of $0.08 versus the $0.02 consensus, while revenue reached $42.71 million, ahead of the $39.94 million estimate. Overall revenue grew 18% year over year, and B2 cloud-storage revenue accelerated 34%. Backblaze Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Raised outlook: Management increased its 2026 revenue forecast to $172 million-$174 million, above the prior consensus of $162.3 million, and guided third-quarter revenue to $44.4 million-$44.8 million versus expectations of $41.2 million. The company also projects B2 revenue growth of more than 40% in 2027. Backblaze raises 2026 revenue outlook
• Positive Sentiment: AI-driven demand and major contract: Backblaze said it is winning new customers and expanding business with existing clients as AI increases demand for scalable storage. Its $335 million strategic agreement with CoreWeave further supports the long-term growth narrative.
• Positive Sentiment: Analyst support strengthened: Needham, B. Riley, Oppenheimer and Citizens JMP all raised their price targets, with targets ranging from $21 to $25 and ratings of Buy, Outperform or Market Outperform.
• Positive Sentiment: Options activity increased: Investors purchased approximately 4,948 call options, about 252% above typical volume, indicating heightened speculative interest in further upside.
• Negative Sentiment: Profitability remains a concern: Although the quarterly EPS result beat expectations, Backblaze continues to report a negative net margin and negative return on equity. After the stock’s sharp advance toward its 52-week high, investors may be taking profits or demanding stronger evidence that growth will translate into sustained profitability.

Analyst Upgrades and Downgrades

BLZE has been the subject of a number of analyst reports. Craig Hallum raised Backblaze from a “hold” rating to a “buy” rating and increased their price target for the company from $6.50 to $16.00 in a research report on Tuesday, June 23rd. Weiss Ratings downgraded shares of Backblaze from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, May 15th. Needham & Company LLC upped their target price on shares of Backblaze from $14.00 to $23.00 and gave the stock a “buy” rating in a research note on Tuesday. William Blair upgraded shares of Backblaze from an “underperform” rating to a “market perform” rating in a report on Tuesday, June 23rd. Finally, Wall Street Zen downgraded shares of Backblaze from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. Eight equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $19.71.

Backblaze Stock Down 5.7%

The stock’s 50-day moving average price is $12.05 and its two-hundred day moving average price is $7.23. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $1.12 billion, a P/E ratio of -47.96 and a beta of 1.56.

Backblaze (NASDAQ:BLZE) last issued its earnings results on Monday, August 3rd. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.06. Backblaze had a negative return on equity of 16.98% and a negative net margin of 13.07%.The firm had revenue of $42.71 million for the quarter, compared to analyst estimates of $39.94 million. As a group, research analysts expect that Backblaze, Inc. will post -0.37 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Backblaze

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Wasatch Advisors LP purchased a new stake in shares of Backblaze during the third quarter worth $17,021,000. Pillsbury Lake Capital LLC purchased a new position in shares of Backblaze in the fourth quarter valued at $8,058,000. Renaissance Technologies LLC raised its stake in shares of Backblaze by 94.5% during the 4th quarter. Renaissance Technologies LLC now owns 810,752 shares of the company’s stock valued at $3,778,000 after purchasing an additional 393,936 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Backblaze by 152.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 517,586 shares of the company’s stock valued at $1,785,000 after purchasing an additional 312,459 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Backblaze by 165.9% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 480,281 shares of the company’s stock worth $4,457,000 after purchasing an additional 299,672 shares in the last quarter. Institutional investors own 54.03% of the company’s stock.

About Backblaze

Backblaze, Inc, a storage cloud platform, provides businesses and consumers cloud services to store, use, and protect data in the United States and internationally. The company offers cloud services through a web-scale software infrastructure built on commodity hardware. It also provides Backblaze B2 Cloud Storage, which enables customers to store data, developers to build applications, and partners to expand their use cases. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as public, hybrid, and multi-cloud data storage; application development and DevOps; content delivery and edge computing; security and ransomware protection; media management; backup, archive, and tape replacement; repository for analytics, artificial intelligence and machine learning; and Internet of Things.