Core Insights - Backblaze will showcase new research on cloud storage costs affecting media workflows at NAB Show New York on October 22-23, 2025 [2][8] - The research indicates that 93% of media organizations face unexpected cloud storage fees, with nearly half experiencing these fees monthly [3][4] Cloud Storage Costs Impact - Rising egress fees and unpredictable billing models are forcing media and entertainment companies to make compromises that affect content availability and production strategies [3][4] - 61% of organizations reduce dataset sizes to manage costs, limiting access to valuable content archives [6] - 49% shorten retention policies, risking the loss of media that could be repurposed [6] - 41% curtail usage of existing libraries, reducing monetization opportunities [6] - 29% cut staff allocation tied to content workflows [6] Barriers to Switching Providers - 50% of media leaders cite egress and data movement costs as the biggest barrier to switching providers [7] - 34% are contract-locked, while 42% mention technical complexity as another major barrier [7] - Despite these challenges, 64% are at least slightly likely to consider switching providers in the next year, indicating a rising demand for transparent options [7] Industry Preferences - 67% of media and entertainment organizations prefer best-of-breed technology approaches over one-stop-shop solutions, reflecting frustration with restrictive ecosystems [8] - Key attributes valued in storage providers include compliance (50%), ease of use (42%), customer support (37%), and high throughput (31%) [5]

Core Insights - Backblaze (BLZE) has seen a significant year-to-date (YTD) increase of 56.8%, outperforming the Zacks Internet-Software industry and Zacks Computer and Technology sector, which returned 16.7% and 19.6% respectively [1] - The company is capitalizing on the AI revolution and executing its growth strategy effectively, leading to a critical decision for investors regarding holding positions or seeking better entry points [1] B2 Cloud Storage Growth - Backblaze's B2 Cloud Storage business is the main driver of its expansion, benefiting from increased enterprise adoption and demand for scalable, cost-efficient infrastructure for AI, media, and cybersecurity workloads [4][6] - The company anticipates B2 Cloud Storage revenue growth of 28% to 30% for Q3 2025, with a Zacks Consensus Estimate of $20.88 million, indicating a 29% year-over-year increase [5][8] - The focus on enterprise scale, predictable pricing, and AI-aligned product innovation strengthens B2 Cloud Storage as a durable and profitable growth engine [6] AI and Cybersecurity Integration - Backblaze is enhancing its market position by integrating AI and cybersecurity features into its cloud storage platform, capitalizing on the rising demand for scalable and secure infrastructure [7][9] - AI-related customers are increasingly contributing to enterprise revenues, diversifying growth and improving visibility across data-intensive use cases [9] - New cybersecurity features such as Anomaly Alerts and Enterprise Web Console enhance threat detection and compliance capabilities for enterprises [9] Competitive Landscape - Backblaze faces competition from Dropbox, Datadog, and Amazon, which are targeting overlapping enterprise workloads and expanding their service offerings [12] - Despite its transparent pricing and open-cloud design, competition from larger rivals may limit near-term market share gains [13] Valuation and Market Position - Backblaze's forward price-to-sales ratio stands at 3.27X, compared to 3.12X for Dropbox and 3.06X for Amazon, indicating a relatively high valuation [14] - The company holds a Zacks Value Score of F, suggesting that the stock may be overvalued following its substantial rally [14] - Continued growth in B2 Cloud Storage and strong demand for AI-related services could justify the current valuation, but investors may prefer to hold existing positions while waiting for more attractive entry points [14][16]

Market Overview - The current stock market environment is challenging, with the S&P 500 showing signs of weakness and potential for decline with negative news [1] Investment Strategy - The suggested strategy involves a rotation out of certain sectors, reflecting a cautious approach to current market conditions [1] Analyst Background - Gary Alexander has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, and has been advising seed-round startups [1]

Core Insights - Backblaze's strategic shift towards cybersecurity innovations positions the company for sustained growth, capitalizing on the increasing demand for data protection and artificial intelligence solutions [1][4] - The company has reported a 16% year-over-year revenue increase in Q2 2025, with B2 Cloud Storage revenue rising by 29%, and expects Q3 revenue to be between $36.7 million and $37.1 million, reflecting a year-over-year growth of 28-30% [3][4] Company Developments - Backblaze is enhancing its enterprise security architecture with tools like AI-powered Anomaly Alerts and the Enterprise Web Console, which improve threat detection and data visibility [2][8] - The Zacks Consensus Estimate for Q3 2025 B2 Cloud Storage revenues is projected at $20.88 million, indicating a 29.05% year-over-year increase, showcasing confidence in the company's growth trajectory [4][8] Competitive Landscape - Backblaze faces competition from Dropbox and Datadog, both of which are intensifying their focus on cybersecurity innovations, integrating AI-based analytics for enhanced data visibility [5] - The competitive environment is becoming increasingly challenging as these companies enhance their threat detection and security monitoring capabilities [5] Financial Performance - Backblaze's shares have increased by 66% year-to-date, outperforming the Zacks Internet-Software industry and the Computer and Technology sector, which returned 19.7% and 24.4% respectively [6] - The company is trading at a forward 12-month price-to-sales ratio of 3.47X, which is lower than the industry's 5.57X, indicating a potentially favorable valuation [10] Earnings Outlook - The Zacks Consensus Estimate for Backblaze's Q3 2025 loss is projected at a penny per share, reflecting a 90% improvement year-over-year [12]

Company Overview - Backblaze, Inc. (BLZE) shares increased by 7.6% to $10.75 in the last trading session, with a notable trading volume and a 21.5% gain over the past four weeks [1] - The company is experiencing accelerated B2 revenue growth, AI-driven opportunities, and innovative product offerings such as B2 Overdrive and enhanced security features [1] Financial Expectations - Backblaze is projected to report a quarterly loss of $0.01 per share, reflecting a year-over-year improvement of +90% [2] - Expected revenues for the upcoming quarter are $36.95 million, which is a 13.4% increase compared to the same quarter last year [2] Earnings Estimates and Stock Performance - The consensus EPS estimate for Backblaze has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 2 (Buy), suggesting positive sentiment in the market [3] Industry Comparison - Backblaze operates within the Zacks Internet - Software industry, where Reddit Inc. (RDDT) also competes, having closed 2.6% lower at $257.56 in the last trading session [3] - Reddit Inc. has seen a +212.5% change in its EPS estimate year-over-year, with a current Zacks Rank of 1 (Strong Buy) [4]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Overview: Backblaze, Inc. (BLZE) - Backblaze, Inc. currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - The stock has seen significant price increases, with a 48.31% rise over the past quarter and a 36.66% increase over the last year, compared to the S&P 500's 9.8% and 15.8% respectively [6] Price Performance - Over the past week, BLZE shares increased by 1.58%, while the Zacks Internet - Software industry rose by 0.24% [5] - The monthly price change for BLZE is 61.51%, significantly outperforming the industry's 0.52% [5] Trading Volume - BLZE has an average 20-day trading volume of 737,278 shares, which is a useful indicator of market interest and can signal bullish or bearish trends [7] Earnings Outlook - In the past two months, four earnings estimates for BLZE have been revised upwards, with the consensus estimate improving from -$0.13 to -$0.03 [9] - For the next fiscal year, three estimates have also moved upwards, indicating positive sentiment regarding future earnings [9] Conclusion - Given the strong momentum indicators and positive earnings revisions, BLZE is positioned as a promising investment opportunity [11]

Group 1 - Backblaze, Inc. (BLZE) has reached a key level of support, with its 50-day simple moving average crossing above the 200-day simple moving average, indicating a "golden cross" which is a bullish signal for potential breakout [1] - The golden cross consists of three stages: a downtrend that bottoms out, the shorter moving average crossing above the longer moving average, and the stock continuing to rise [2] - Over the past four weeks, BLZE has gained 50.8%, and it currently holds a 2 (Buy) rating on the Zacks Rank, suggesting a strong bullish case [3] Group 2 - The positive earnings outlook for BLZE is supported by four upward revisions in earnings estimates over the past 60 days, with no downward revisions, indicating a favorable trend [3] - Investors are encouraged to consider adding BLZE to their watchlist due to the significant technical indicator and the positive movement in earnings estimates [5]

Company Performance - Backblaze, Inc. (BLZE) shares have increased by 50.8% over the past month, reaching a new 52-week high of $8.25 [1] - Year-to-date, Backblaze has gained 36.5%, outperforming the Zacks Computer and Technology sector's 12.4% and the Zacks Internet - Software industry's 19.5% [1] Earnings and Revenue - Backblaze has consistently exceeded earnings expectations, reporting EPS of $0.01 against a consensus estimate of -$0.05 in its last earnings report [2] - For the current fiscal year, Backblaze is projected to have earnings of -$0.03 per share on revenues of $146.26 million, reflecting a 92.5% change in EPS and a 14.59% change in revenues [3] - The next fiscal year forecasts earnings of $0.12 per share on revenues of $167.45 million, indicating a year-over-year change of 475% in EPS and 14.49% in revenues [3] Valuation Metrics - Backblaze has a Value Score of F, while its Growth and Momentum Scores are both A, resulting in a combined VGM Score of B [6] - The stock currently holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, suggesting potential for further gains [7] Industry Comparison - The Internet - Software industry is positioned in the top 29% of all industries, indicating favorable conditions for both Backblaze and its peer, Karooooo Ltd. (KARO) [10] - Karooooo Ltd. has a Zacks Rank of 2 (Buy) and is expected to post earnings of $1.93 per share on revenues of $308.19 million for the current fiscal year [8][9]

Core Viewpoint - Backblaze, Inc. (BLZE) shares have increased by 39.3% in the past four weeks, closing at $7.65, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $10.64, representing a 39.1% upside [1] Price Targets - The average price target consists of seven short-term estimates ranging from a low of $8.00 to a high of $14.00, with a standard deviation of $2.06, indicating variability among analysts [2] - The lowest estimate suggests a 4.6% increase from the current price, while the highest estimate indicates an 83% upside [2] Analyst Sentiment - Analysts show strong agreement regarding BLZE's ability to report better earnings than previously predicted, which supports the view of potential upside [4] - The Zacks Consensus Estimate for the current year has risen by 16.4% over the past month, with four estimates increasing and no negative revisions [12] Zacks Rank - BLZE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [13] Conclusion on Price Targets - While the consensus price target may not be a reliable indicator of the extent of potential gains, the direction implied by these targets appears to be a useful guide for further research [14]

Group 1: SkyWater Technology - SkyWater Technology has a 12-month stock price forecast of $13.00, indicating a 13.50% upside from the current price of $11.45, based on three analyst ratings [2] - The company reported a significant revenue drop of 37% year-over-year in Q2 2025, leading to widened losses per share, although gross margin improved by 20 basis points to 18.5% [2][3] - The acquisition of Fab 25 from Infineon Technologies is expected to generate at least $300 million in annual revenue and enhance EBITDA, with positive impacts anticipated as early as the current quarter [3][4] - SkyWater's acquisition supports a multi-year supply agreement exceeding $1 billion and positions the company favorably amid U.S. regulations favoring onshore semiconductor manufacturing [4] Group 2: Emergent BioSolutions - Emergent BioSolutions has a 12-month stock price forecast of $14.33, representing a 56.61% upside from the current price of $9.15, based on three analyst ratings [5] - The company experienced mixed results in Q2 but improved EPS significantly, beating expectations by 42 cents per share, driven by strong NARCAN sales and cost optimization strategies [6][7] - Emergent secured a $65 million contract with the Ontario Ministry of Health for NARCAN, contributing to the rapid growth of its international medical countermeasures business [8] Group 3: Backblaze - Backblaze has a 12-month stock price forecast of $10.07, indicating a 32.05% upside from the current price of $7.63, based on seven analyst ratings [9] - The company reported a 16% year-over-year revenue increase and a 29% surge in storage revenue due to rising demand from AI, despite wider-than-expected GAAP losses per share [9][10] - Backblaze's adjusted EBITDA margin is improving, and the successful launch of its B2 OverDrive platform is a positive indicator for future growth [10][11] - The stock has gained over 48% in the past month, with unanimous Buy ratings from all seven analysts and a consensus price target suggesting an additional 31% upside [11]