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Snap explodes another 10% on second day of trading

Shares of Snap's stock extended their IPO gains on Friday, rising 10.6 percent.

Snapchat's parent company hit the public markets in a much-anticipated IPO on Thursday. The stock surged 44 percent on its first day, trading in heavy volume.

Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management, told CNBC the positive reaction to the IPO may be a reflection of the so-called animal spirits reawakening in the stock market.

"For the tech sector as a whole, I think it shows that people are still optimistic about the outlook," Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management, told CNBC's "Squawk Alley" on Friday. "But obviously you can't extrapolate what's going on with one stock for the rest of the sector, especially such a diverse sector."

On Friday, NBCUniversal, the parent company of CNBC, confirmed that it said invested $500 millionin Snap on IPO day, deepening an existing partnership with the augmented reality and photo messaging company.

The investment is part of an ongoing mission to drive digital growth in NBCUniversal's digital properties. The media giant has also invested in millennial-focused brands like Hulu, BuzzFeed, Vox and Rotten Tomatoes.

Source: FactSet

"I actually think Snap's valuation today makes some sense," Glenn Solomon, managing partner at GGV Capital, told CNBC. "The ad units on Snapchat perform so well today. ... I think the users of Snap will monetize so well over time."

Despite the vote of confidence from NBC, Venice, California-based Snap has had a mixed reception on Wall Street. It has yet to receive a buy rating from any analyst listed in FactSet. Morningstar, for example, initiated coverage of the stock with a fair value estimate of $15 a share, well below the Friday's price of more than $27.

Underwriters
Number of shares
Morgan Stanley & Co. LLC 60,484,615
Goldman, Sachs & Co. 49,600,000
J.P. Morgan Securities LLC 26,500,000
Deutsche Bank Securities Inc. 20,000,000
Barclays Capital Inc. 12,000,000
Credit Suisse Securities (USA) LLC 6,153,846
Allen & Company LLC 14,000,000
BTIG, LLC 923,077
C.L. King & Associates, Inc. 123,077
Citigroup Global Markets Inc. 1,230,769
Connaught (UK) Limited 307,692
Cowen and Company, LLC 923,077
Evercore Group, LLC 615,385
Jefferies LLC 615,385
JMP Securities LLC 307,692
LionTree Advisors LLC 923,077
LUMA Securities LLC 307,693
Mischler Financial Group, Inc. 123,077
Oppenheimer & Co. Inc. 615,385
RBC Capital Markets, LLC 1,230,769
Samuel A. Ramirez & Co., Inc. 123,077
Stifel Financial Corp. 923,077
SunTrust Robinson Humphrey, Inc. 307,692
The Williams Capital Group, L.P. 123,077
UBS Securities LLC 1,230,769
William Blair & Company, L.L.C. 307,692
Total 200,000,000

"With the excitement of the Snap IPO heating to a boil, investors are wise to let the hype cool once it hits the public markets," Mike Loewengart, E-Trade's vice president of investment strategy, said ahead of the IPO. "While highly anticipated IPOs of this magnitude may be tempting to jump in immediately, historically many IPOs — particularly social media companies — often need time and room to acclimate to the rigors of being a public company."

But "negative news" about the company — including that the stock did not include voting rights and that the company was losing money — may actually have helped the IPO, Solomon said.

"In the IPO market, sometimes hot is cold and cold is hot," Solomon said. "The long-term investors who want to participate in a company like this, they have long memories. They remember Twitter being hot, and then the stock not working in the after-market. They even remember back to Facebook and Google, where those deals were cold, but the stocks have been heroic ever since. .... The underwriters did a great job getting it into the right hands."

— CNBC's Fred Imbert contributed to this report.

Disclosure: CNBC parent NBCUniversal is an investor in Snap.

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