Needham raises Backblaze price target to $14, maintains Buy

0 min read Updated on 24 Jun 2026, 04:58 PM

Reviewed by

Radhika SScanX News Team

AI Summary

Needham analyst Mike Cikos maintained a Buy rating on Backblaze (NASDAQ: BLZE) and raised the price target to $14 from $8.5, indicating a positive outlook for the cloud storage company.

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Needham analyst Mike Cikos has maintained a Buy rating on Backblaze (NASDAQ: BLZE) and raised the price target to $14 from $8.5. The adjustment reflects increased confidence in the cloud storage provider's market position and growth trajectory.

The revised target suggests significant upside potential for the stock. Backblaze specializes in providing cloud storage and data backup services for businesses and individuals.

Metric	Value
Rating	Buy
Previous Price Target	$8.5
New Price Target	$14

What specific market trends or competitive advantages drove Needham's increased confidence in Backblaze's growth trajectory?

How does Backblaze plan to differentiate itself from larger cloud storage providers like Amazon Web Services and Microsoft Azure?

What are the key financial or operational milestones Backblaze must achieve to justify the new $14 price target?

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Backblaze shares rise 30% on $335M CoreWeave deal

1 min read Updated on 23 Jun 2026, 09:52 PM

Reviewed by

Riya DScanX News Team

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Backblaze Inc. shares rose 30.4% to $10.59 on Tuesday after the company announced a five-year, $335 million multi-exabyte data storage agreement with CoreWeave Inc. The partnership aligns with strong demand for AI infrastructure, establishing Backblaze as a key storage provider for CoreWeave's managed storage environment. The agreement involves supplying cost-efficient HDD-based storage capacity to optimize data placement for AI workloads.

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Backblaze Inc. shares rose 30.4% to $10.59 on Tuesday after the company announced a five-year, $335 million multi-exabyte data storage agreement with CoreWeave Inc. The partnership aligns with strong demand for AI infrastructure and establishes Backblaze as a key storage provider for CoreWeave's managed storage environment. This collaboration enables CoreWeave to optimize data placement across performance tiers while preserving high-performance resources for intensive AI tasks.

Under the agreement, Backblaze will supply cost-efficient HDD-based storage capacity that supports portions of CoreWeave’s managed storage infrastructure. The technology specifically supports HDD-based storage tiers within CoreWeave AI Object Storage. Customers utilizing CoreWeave AI Object Storage with its patented LOTA distributed cache will gain immediate access to these new service tiers without requiring code modifications.

Strategic Alignment for AI Workflows

Every stage of the AI lifecycle, including training, inference, checkpointing, data preparation, model outputs, and retrieval-augmented generation, relies on the ability to store and move massive volumes of data efficiently. The integration is designed to ensure storage performs at the speed and scale modern AI demands. Gleb Budman, co-founder and CEO of Backblaze, emphasized that storage is the foundation of every AI workflow, noting that even powerful compute resources sit idle without it.

Market Impact and Operations

The $335 million agreement represents a meaningful revenue commitment for Backblaze, which serves more than 100,000 customers worldwide. CoreWeave's AI cloud platform serves leading AI model developers, enterprises, and research organizations, including nine of the top ten AI model providers. Nick Hoover, Vice President at CoreWeave, stated that Backblaze has built a reputation for making complex, HDD-based storage infrastructure reliable and easy-to-consume at scale.