In one of the most highly anticipated IPOs in years, Snap Inc. went public on Thursday.
The stock was priced at $17 per share on Wednesday night, but surged to $24 at its open on Thursday -- a 44% pop. After a double-digit gain during Friday's trading session, the stock is showing no signs of slowing down.
But not everyone on the street is ready to snap up shares.
Nomura and Pivotal Research have "sell" ratings on the stock, and today Atlantic Equities downgraded the stock to Underweight from neutral.
The "Halftime Report" traders debated the call.
For now, none of the traders are jumping into the stock -- Jon Najarian, known for his fast money trades, is already out of Snap. (He bought 100 shares ahead of the IPO, but exited his position on Friday.)
But Najarian will be watching the stock closely this coming Tuesday. That's when stock that was issued on the IPO becomes widely available for lending, which will enable speculators to sell the stock short.
Josh Brown isn't a buyer here, but he also points out that now might not be the time to short the stock.
Snap could climb higher for the foreseeable future, but not based on fundamentals or technical levels. It could soar simply because there just isn't that much stock -- a situation that creates "artificial scarcity," which in turn drives the stock higher.
He points to GoPro as a comparison. Back in 2014 the camera-maker went public at $24 per share, before surging to $100 just three months later. Today, the stock trades below $9.
Shark Tank investor and O'Shares ETF chairman Kevin O'Leary was offered the stock pre-IPO, but turned it down due to a 90-day lock up provision.
Value investor Jim Lebenthal believes that the market is looking at Snap not as a Twitter or GoPro story, but rather as a Facebook story.
GoPro and Twitter soared in their first year after going public, but have since fallen below their IPO prices. Facebook on the other hand, fell almost 32% in its first year. Today, it's up 258% since going public at $38 per share.
Lebenthal believes investors will give Snap the benefit of the doubt. If it falls in the first year investors might not be so quick to exit.
Only time will tell if the company's prospects disappear, but for now the traders are staying on the sidelines since they believe momentum and hype are driving this stock higher.
CNBC parent company NBCUniversal invested $500M in Snap Inc's IPO.