Snap stock was priced at $17 per share for its initial public offering, but unsurprisingly, investors pushed it above $20 per share for its debut on the New York Stock Exchange today. Shares of Snap Inc. (NYSE: SNAP) quickly soared past 85 million in early trading, making the stock one of the most active on major U.S. exchanges in morning trading. The stock skyrocketed by more than 40% in what is now the biggest IPO since 2014.

It seemed some investors were so excited about the IPO and very confused about the name of Snapchat’s parent company, so they pushed shares of Snap Interactive higher —that is, until Snap Inc.’s IPO opened. Snap Interactive shares erased some of the 18% gains they picked up before Snap stock opened, falling by more than 7%.

Snap stock IPO priced at $17 per share

Snap Inc.’s valuation was $24 billion at its initial public offering price of $17 per share. Clement Thibault, senior analyst for the global financial platform Investing.com, called this price “a stretch at best – and most likely one of the most overvalued IPOs in recent years.”

“With no timetable for profitability, vague growth prospects, and heavy competition, it is hard to see Snap Inc. justifying a $24 billion valuation in the near to mid term future,” he wrote in an email. “In order to thrive, Snap has to continue to innovate as well as pull in more users to its platforms. Which means high R&D expenses for the foreseeable future. However, the company also needs to be smart about its routes to monetization. Facebook, for example, was always profitable. Twitter still isn’t.”

Warnings about Snap stock

Thibault also warned about the threat from Facebook, noting that Snap isn’t suing the social network for infringement despite its blatant “copying” of Snapchat’s main features. He feels that this “speaks volumes” about Snap’s ability to defend “the innovation that makes it unique.” Further, if Facebook keeps copying its features, then any innovation it might be able to come up with won’t be worth much.