Snap Inc. (Nasdaq: SNAP) shares are in record territory in reaction to the company's second-quarter results.

The Snap Analyst: Rosenblatt Securities analyst Mark Zgutowicz reiterated a Buy rating on Snap and $100 price target.

Needham analyst Laura Martin maintained a Hold rating.

JMP Securities analyst Ronald Josey reiterated a Market Perform rating and increased the price target from $89 to $94.

Raymond James analyst Aaron Kessler maintained a Market Perform rating.

Morgan Stanley analyst Brian Nowak maintained an Outperform rating and lifted the price target from $75 to $85.

Credit Suisse analyst Stephen Ju maintained an Outperform rating and raised the price target from $90 to $110.

Rosenblatt On Snap's Revenue Momentum: Snap's continued accelerating revenue momentum is impressive, highlighting its "untouchable Gen Z ads target positioning, levered with unique AR platform and product IP," Zgutowicz said in a note.

"With many marketers repositioning DR spend to targeted brand awareness, SNAP is well positioned with its dynamic product ads, non-skip Commercials, and other premium-priced video inventory," the analyst said.

Snap's progression, he said, is becoming evident in its relative average revenue per user quickly closing in on its nearest social peers.

What Needham Liked, Disliked In Snap's Q2: Snap's year-over-year revenue growth of 116% and the turnaround from an EBITDA loss of $96 million to a profit of $117 million, 75% growth in average revenue per user, gross margin expansion and daily average user growth of 23% to 293 million were among the metrics that Needham liked about Snap's second quarter, Martin said.

Snap's bottom-of-funnel focus on Direct Response, according to the analyst, creates a floor for revenue growth. The company's focus on augmented reality is attracting large categories of e-commerce DR advertisers, which should drive revenue growth, she added.

On the flipside, the analyst noted a decline in time spent with friend's content, a decline in free cash flow and reduced contribution of North America to daily average user addition. Spotlight, though gaining traction, is pushing up cost, the analyst added.

The iOS shift negatives could be pushed into future periods, given the slower-than-expected adoption of iOS' latest updates, Martin said.

JMP Lauds Snap's Execution: Snap is executing extremely well with DAU growth across all regions, Spotlight adoption continuing to ramp and an advertising tech stack that is gaining scale, Josey said.

"The net result here is that Snap has a long runway for continued growth and we continue to believe it is one of the most innovative companies across our coverage universe," the analyst said in the note.

Snap's goal of 50%-plus revenue growth over the next several years is achievable, he said. Engagement growth and Spotlight continue to gain adoption, Josey said.

Given a rise in advertiser demand across verticals, improved auction optimization, and a mix-shift toward higher eCPM products like Dynamic Ads, Snap's average eCPM increased 122%, the analyst noted. The improvement in profitability despite investments, highlight Snap's high-margin model, he said.

Why RayJay Is Sidelined On Snap: Snap's better-than-expected revenue was driven by a favorable operating environment, continued success with direct response and large brand advertisers, sales teams investments, as well as a delay in expected IDFA disruptions, Kessler said.

Snap is also experiencing strong traction in its products such as AR and Spotlight, the analyst said. The company's above-consensus third-quarter revenue guidance suggests continued strength, he added.

The risk-reward is fairly balanced at current levels, the analyst said.

Morgan Stanley's Key Takeaways On Snap: Snap's ad revenue strength was broad-based across use cases, as performance-focused innovation like improved matching, dynamic product ads and new AR lenses are leading to increased advertiser and spend per advertiser growth, Nowak said.

Snap identifying OTA Booking.com as a customer that uses dynamic ads to reach new customers, according to the analyst, is noteworthy. Travel represents a $10-billion U.S. online ad market, he added.

"The extent to which SNAP is able to more fully penetrate these advertisers could be a meaningful multi-year tailwind to growth," Nowak said.

The analyst expects Snap to continue to invest aggressively in headcount to further innovate and growth. Opex could grow by 22% in 2022, he estimates.

SNAP Price Action: At last check, Snap shares were rallying 23.6% to $77.83.