On the second day of trading following its eye-popping initial public offering, Snap (SNAP) soared in morning trades but eased back toward midday, still at a sky-high valuation despite warnings by analysts.
Shares in the owner of mobile messaging sensation Snapchat shot up as much as 20% on the stock market today, but they ended the session up 11%, at 27.07. Snap shares rose 44% in their Thursday debut, to 24.48. The company now has a market valuation near $31.15 billion.
Snap’s IPO performance has surpassed even the rosiest of forecasts, with previous reviews expressing skepticism and warnings. Snap sold 200 million shares at 17 each, raising $3.4 billion and receiving a market valuation near $24 billion. The closely watched IPO was multiple times oversubscribed, which helps explain the first day pop in shares. The IPO has been heavily scrutinized, with analysts displaying skepticism and warnings that the company is overvalued.
The company’s debut has drawn interest from Comcast’s (CMCSA) NBC Universal unit, which invested $500 million in the company’s initial offering. In a note to employees, NBC Universal Chief Executive Steve Burke said in a note to clients that Snap CEO Evan Spiegel and his team “have done an outstanding job building Snap into an extremely innovative and…