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Snap IPO may boost tech stocks into the summer, history shows

Signage for Snap Inc., parent company of Snapchat, is displayed on monitors on the floor New York Stock Exchange (NYSE) before the opening bell, March 2, 2017 in New York City.
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Signage for Snap Inc., parent company of Snapchat, is displayed on monitors on the floor New York Stock Exchange (NYSE) before the opening bell, March 2, 2017 in New York City.

Snap's IPO may hurt technology stocks in the week ahead, but should help boost the sector over the next three months, according to analysis of past big tech/social media IPOs.

Snap, which made its trading debut on the NYSE on Thursday with a big initial surge, could garner a lot of attention from tech investors, who may sell other holdings to buy up shares of the hot new entry into the sector. After a short period, the whole industry may get a lift as the new IPO raises valuations for the space in the eyes of investors, history shows.

Using Kensho, CNBC looked at the trading history around the Twitter IPO in 2013, the Facebook debut in 2012 and Alphabet's (Google's) 2004 start.

Here's what happened to a major technology ETF, the SPDR Technology (XLK) and the S&P 500 in the week, month and three months following those IPOs, according to Kensho.

After trailing the market in the first week, tech goes on to nearly double the return of the market three months out.

Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.