This $4 stock powers AI data — and Wall Street can’t even buy it. I think $BLZE might be one of the most mispriced small-cap tech stocks right now. 1/ In investing, rule #1 is simple: Avoid permanent loss of capital. That’s why I look for: • Strong balance sheets • Real growth • Asymmetric upside Backblaze checks all three. 2/ The numbers: • Market cap: $230M • Revenue: $142M • Cash: $50M • Growth: ~20% • Retention: ~90% • P/S: 1.6 Most infra software trades ~6× sales. 3/ Why so cheap? It’s tiny. Many funds literally can’t buy it due to: • market-cap limits • liquidity rules • price restrictions So institutions ignore it. That’s the opportunity. 4/ Downside protection: • Recurring revenue • High retention • Strong balance sheet • Near profitability If growth continues, risk shrinks while upside expands. 5/ The real story = AI storage. Training AI models requires massive datasets. Datasets require storage. Cheap storage wins. Backblaze B2: • S3 compatible • cheaper than AWS • easy migration 6/ Translation: AI growth → data growth → storage demand → B2 adoption. You don’t need hype. You need infrastructure. 7/ Risks (important): • Share dilution since IPO • Consumer segment flat • Competition (Cloudflare R2) • Short-seller allegations Not risk-free. Just mispriced risk. 8/ If valuation rerates from 1.6× → 6× sales that alone = ~3–4× upside. Those are the setups that create multi-baggers. I own shares. Link to full article: montecristoinvesting.substack.com/p/my-5-rules-f…
