Backblaze (NASDAQ:BLZE) Stock Price Down 9.8% – Time to Sell?

Backblaze, Inc. (NASDAQ:BLZE) shares traded down 9.8% during trading on Wednesday . The company traded as low as $17.75 and last traded at $17.85. Approximately 902,520 shares traded hands during trading, a decline of 55% from the average session 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.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. Citigroup reissued a “market outperform” rating on shares of Backblaze in a research note on Thursday, July 23rd. William Blair upgraded Backblaze from an “underperform” rating to a “market perform” rating in a report on Tuesday, June 23rd. Lake Street Capital reissued a “buy” rating and issued a $21.00 price target on shares of Backblaze in a research note on Tuesday. Citizens Jmp increased their price target on Backblaze from $16.00 to $21.00 and gave the stock a “market outperform” rating in a report on Tuesday. Finally, Wall Street Zen downgraded shares of Backblaze from a “buy” rating to a “hold” rating in a research report on Saturday, June 27th. Eight investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Backblaze presently has an average rating of “Moderate Buy” and an average target price of $19.71.

Backblaze Price Performance

The business has a 50-day moving average of $12.05 and a 200 day moving average of $7.23. The firm has a market capitalization of $1.12 billion, a P/E ratio of -47.96 and a beta of 1.56. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.28.

Backblaze (NASDAQ:BLZE) last issued its earnings results on Monday, August 3rd. The company reported $0.08 earnings per share for the quarter, topping analysts’ consensus estimates 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 company had revenue of $42.71 million for the quarter, compared to analyst estimates of $39.94 million. On average, sell-side analysts predict that Backblaze, Inc. will post -0.37 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Backblaze by 8.2% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,323 shares of the company’s stock worth $161,000 after acquiring an additional 2,229 shares during the last quarter. Invesco Ltd. lifted its position in Backblaze by 8.3% in the 4th quarter. Invesco Ltd. now owns 44,103 shares of the company’s stock valued at $206,000 after acquiring an additional 3,363 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Backblaze by 12.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,219 shares of the company’s stock valued at $151,000 after purchasing an additional 3,523 shares during the last quarter. Cerity Partners LLC boosted its stake in Backblaze by 3.6% during the 2nd quarter. Cerity Partners LLC now owns 109,001 shares of the company’s stock valued at $600,000 after purchasing an additional 3,763 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its holdings in Backblaze by 31.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 19,292 shares of the company’s stock worth $106,000 after purchasing an additional 4,650 shares in the last quarter. 54.03% of the stock is currently owned by institutional investors and hedge funds.

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.