Backblaze: B2 Cloud Growth Keeps Slowing, Banks On Neocloud (Downgrade)

Gary Alexander33.45K FollowersFollow5ShareSavePlay(10min)CommentsSummaryBackblaze is downgraded to "Neutral" as its growth decelerates and competitive positioning weakens amid AI-driven storage shifts.BLZE's B2 Cloud Storage growth missed even reduced targets, signaling shrinking market opportunity and heightened competition from specialized providers.A major neocloud deal offers future potential but delays meaningful revenue until 2027, increasing uncertainty and reliance on unproven segments.Despite a low 5.5x EV/FY26 adjusted EBITDA multiple, BLZE's single-digit growth and margin contraction diminish its value proposition versus other SaaS peers. Bongkod Worakandecha/iStock via Getty Images So far in 2026, two major bearish themes have shaken the stock market: the escalation of tensions in the Middle East and rapid surge in oil prices, and the so-called “SaaSpocalypse” theory that AI will upend much of the current state of play in theThis article was written byGary Alexander33.45K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.