Backblaze earnings and guidance in focus

Backblaze (BLZE) drew investor attention after reporting second quarter 2026 results, updating its revenue guidance for the year, and showcasing its AI focused storage products at a major industry conference this week.

Backblaze's share price has reacted strongly to recent earnings, guidance and AI product news, with a 7 day share price return of 37.17% and a 90 day share price return of 151.60%. The 3 year total shareholder return of 331.65% points to powerful longer term momentum.

If Backblaze's AI storage story has your attention, this could be a good moment to widen your watchlist using the 55 AI infrastructure stocks. You can use it to spot other potential beneficiaries of growing AI infrastructure demand.

Backblaze has recently combined rapid share price gains with higher revenue guidance and renewed AI-related attention. Are investors already paying up for the story, or does the current valuation still sit behind the business shift?

Most popular Backblaze narrative: 101.4% overvalued

Backblaze last closed at $18.82, while the most followed narrative anchors fair value at $9.34, using a 9.06% discount rate and detailed long term assumptions.

The explosive increase in AI workloads is driving a step-function expansion in Backblaze's addressable market, AI customer data stored grew 40x year-over-year, and 3 of their top 10 customers are now AI companies, positioning B2 Cloud as a direct beneficiary of surging global data creation and accelerating secular demand likely resulting in accelerated multi-year revenue growth.

Curious how that AI storage surge feeds into the $9.34 fair value, the required profit margin shift, and the high future earnings multiple behind this call.

Result: Fair Value of $9.34 (OVERVALUED)

However, there are clear pressure points for the Backblaze story, including declining Computer Backup revenue and a heavy reliance on a handful of large AI storage customers.

Next Steps

The mix of strong share price gains, AI enthusiasm and valuation debate around Backblaze can feel polarizing. Do not wait to check the details, compare both the upside and downside, and weigh the 2 key rewards and 3 important warning signs.

Looking for more Backblaze style investment ideas?

If Backblaze has sharpened your focus on opportunities, do not stop here. Use targeted screens to spot stocks that better match your goals and risk comfort.

• Prioritise quality at a sensible price and review companies highlighted in the 51 high quality undervalued stocks for potential ideas that might deserve a place on your radar.
• Strengthen your income stream by checking out the 8 dividend fortresses and see which stocks combine higher yields with a focus on sustainability.
• Protect your downside by scanning the 79 resilient stocks with low risk scores and compare businesses that score well on resilience and risk controls.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.