Backblaze Sees Significant Growth in AI Customers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2026
0mins
Source: stocktwits
- Contract Wins: Backblaze secured multiple contracts with an AI training data firm and a generative AI video creation company, contributing approximately $1.5 million in annual contract value, indicating a growing market appeal in the AI sector.
- Earnings Beat Expectations: The company reported Q1 earnings per share of $0.04 on revenue of $38.7 million, surpassing Wall Street's expectations of nil earnings and $37.8 million in revenue, leading to a 68% surge in stock price at opening, reflecting strong market confidence in its performance.
- Significant Customer Growth: Backblaze achieved a 24% year-on-year increase in its B2 Cloud storage segment, with annual recurring revenue from large customers growing by 72%, and the number of customers generating over $50,000 in ARR soaring by 51% year-over-year, showcasing robust performance in the cloud storage market.
- Analysts' Bullish Outlook: Analysts at Lake Street and Needham raised their price targets for Backblaze to $11 and $8.5 respectively, maintaining a 'Buy' rating, primarily due to the upward revision of the 2026 revenue forecast, suggesting a return to double-digit revenue growth in the future.
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Analyst Views on BLZE
Wall Street analysts forecast BLZE stock price to fall
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 16.360
Low
8.00
Averages
9.50
High
11.00
Current: 16.360
Low
8.00
Averages
9.50
High
11.00
About BLZE
Backblaze, Inc. is a cloud storage company. The Company's two cloud services that it offers on its Storage Cloud are: Backblaze B2 Cloud Storage and Backblaze Computer Backup. Backblaze B2 Cloud Storage enables customers to store data, developers to build applications, and partners to expand their use cases. The amount of data stored in this cloud service can scale up and down as needed on a pay-as-you-go basis, or can be paid for on a capacity basis or committed contract for greater predictability. This Infrastructure-as-a-Service enables use cases including backups, multi-cloud, application storage, ransomware protection, and storage for artificial intelligence/machine learning workflows. Backblaze Computer Backup automatically backs up data from laptops and desktops for businesses and individuals. This service is offered as a subscription-based Software-as-a-Service and serves use cases including computer backup, ransomware protection, theft and loss protection, and remote access.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Semiconductor ETF Plunge: The VanEck Semiconductor ETF (SMH) plummeted 7%, primarily driven by declines in shares of Micron, Broadcom, and Nvidia, reflecting market concerns over the semiconductor sector's outlook and prompting investors to reassess their strategies.
- Investor Sentiment Shift: While retail sentiment for SPY was bearish, QQQ and DIA showed bullish sentiment, indicating a divergence in market perceptions that could influence future capital flows across different sectors.
- Foreign Selling Intensifies: The drop in South Korean equities, coupled with foreign institutional investors offloading approximately $2.5 billion in Kospi shares, exacerbates concerns that the recent boom in tech and AI stocks may be overblown, potentially leading to a decline in global investor confidence in these assets.
See More
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- Investor Focus on Data Release: The company expects to report NEO100-01 Phase 2a clinical data by the end of July 2026, and positive results could support discussions for additional regulatory pathways, enhancing market confidence in its product pipeline.
- Gene Editing Strategic Shift: The merger between Boundless Bio and Serapha Bio will create a company focused on gene-editing therapies for Alpha-1 Antitrypsin Deficiency, backed by approximately $230 million in financing, which is expected to support the completion of Phase 2 and initiation of Phase 3 for SERP-01, addressing a significant unmet medical need.
- Data Storage Agreement Surge: Backblaze has signed a five-year, multi-exabyte data storage agreement valued at approximately $335 million with CoreWeave, positioning itself as a key storage provider to meet the growing demand for AI computing capacity, thereby solidifying its strategic position within the rapidly evolving AI ecosystem.
See More
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- Deal Value: Backblaze has secured a five-year deal worth $335 million with CoreWeave to enhance its managed storage infrastructure, which is crucial for optimizing data placement across performance tiers, thereby significantly boosting Backblaze's competitive edge in the AI storage market.
- Stock Reaction: Following the announcement, Backblaze's shares surged 30% in early trading on Tuesday, reflecting strong market confidence in its growth potential, while CoreWeave's shares dipped about 2%, indicating a more cautious investor sentiment regarding its future outlook.
- Market Opportunity: Backblaze estimates a $14 billion opportunity in the neocloud storage market by 2030, having engaged with most top neoclouds and signed multiple six-, seven-, and eight-figure deals, showcasing its robust positioning in the rapidly growing AI-driven infrastructure sector.
- Industry Context: As AI workloads increasingly demand efficient storage solutions, Backblaze's HDD-based storage infrastructure is deemed foundational for AI workflows, with CEO Gleb Budman emphasizing the critical role of storage in AI computing, further solidifying its market position.
See More
