Jim Cramer on Backblaze: “Solid Company, Just Not the Right Time”

Backblaze, Inc. (NASDAQ:BLZE) was among the stocks Jim Cramer highlighted during Mad Money, as he noted the rotation into defensive sectors. Cramer suggested putting a “pin in it,” as he said:

For such a tiny company, Backblaze is already starting to put up some pretty impressive numbers… We’re talking about a relatively small-time money loser that’s moving toward profitability. Meanwhile, they’re winning lots of new business… My biggest worry here about Backblaze, though, this is really important, it’s timing. Right now, everybody’s selling anything connected to the AI complex in order to raise money to participate in the SpaceX and Anthropic, and OpenAI deals. That’s what’s going on in this market.

I think these deals, as well as a big fundraiser from Google, cast a pall on the entire industry. Meanwhile, Backblaze currently sells for about three times sales and 50 times next year’s earnings estimates. That’s not terribly expensive, but it’s certainly not cheap and compelling either.

In the end, I gotta say this, despite the small market cap, Backblaze is a real company with a real business, solid revenues, big customers, and improving financials, but the bottom line: Backblaze lacks the explosive growth of the hottest AI names that we look at. And I think we’re looking at a much tougher environment for the entire group here. Solid company, just not the right time. You know what? I say, put a pin in it.

Photo by Artem Podrez on Pexels

Backblaze, Inc. (NASDAQ:BLZE) provides a web-scale cloud storage platform for businesses and individuals to store, manage, and protect data through services like B2 Cloud Storage and automated computer backup.

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