U.S. technology equities appear to be approaching troubled waters. Wednesday marked a $1 trillion market rout for the tech-heavy Nasdaq Composite, one of the index’s worst since 2022. As I mentioned in previous articles, investors are getting fatigued with the craze surrounding artificial intelligence (AI). Wall Street analysts, as well as traders, are not so sure when the large capital investments in procuring AI-related hardware will finally pay off. Not to mention, U.S. technology equities are trading at frothier multiples by the week. According to Bloomberg, a couple of weeks ago, the S&P 500 information technology index’s price-to-earnings ratio climbed to its highest since 2002, and even with Wednesday’s rout, many tech companies are trading at expensive valuations.

Are tech stocks a sell nowadays? That depends on the potential opportunities specific to each company. In 2024’s competitive election, some “little tech” stocks could benefit from Donald Trump’s Candidacy. Below are 3 little tech stocks that may get that boost.

Trump Media & Technology Group (DJT)

It’s hard to make a tech stock list that could benefit from a Trump victory without mentioning his own social media company. Donald Trump has always had a contentious relationship with both legacy and new media platforms. These tensions became even more heightened after the January 6th riots in 2021 that led to chaos and vandalism U.S. Capitol building.

The violence led to the Former President’s removal from Twitter, although since Elon Musk’s acquisition of the social media giant, Musk has reinstated Trump’s account. Meta Platforms (NASDAQ:META) also banned Trump from their platform as well, which lasted for two years.  Following these bans, Trump has promoted his alternative social media platform, Truth Social, owned by the Trump Media & Technology Group (NASDAQ:DJT). The probability of a Trump win in November has already catapulted DJT shares more than 74% for the year. An actual victory will likely give the stock a bump as well.

Coinbase Global (COIN)

The shares of bitcoin financial infrastructure and trading exchange firm Coinbase Global (NASDAQ:COIN) will also be a beneficiary of a Trump victory. Coinbase users can set up accounts and trade a variety of cryptocurrencies as well as take advantage of crypto wallets. The famous cryptocurrency Bitcoin has been on a tear recently, despite having a slow start to the year. Donald Trump has expressed pro-crypto sentiments, most likely as a strategy to court undecided or libertarian voters. After the former president’s assassination attempt in mid-July, Bitcoin rallied more than 5% on the following Monday.

Coinbase trades at $60 billion market capitalization, and a president who is friendlier towards cryptocurrency usage and proliferation will definitely send its share price higher. Even bitcoin bets on the run-up to the election have already started to spur the crypto exchange’s shares. Coinbase has rallied nearly 41% on a year-to-date basis. Bitcoin seeing more price movement could also drive higher usage of Coinbase’s platform.

Duolingo (DUOL)

The final “little tech” stock that could see a bump in its share price upon a Trump victory is Duolingo (NASDAQ:DUOL). While this might be an unlikely pick for many investors, having an understanding of Trump’s potential education policies could help investors to see why Duolingo could indeed receive such a bump. Education policy has been on the backburner over the last several election cycles. The COVID-19 pandemic even made public education institutions and their students worse off. Nowadays, there is a lot of disagreement amongst liberals and conservatives on what is to be taught in schools. Donald Trump will likely allow individual states to have their way when it comes to imposing curriculum changes, or he could enforce a “conservative values” approach to education policy.

Either way, there will be unsatisfied parents who could begin to seek schooling alternatives. That’s where a company like Duolingo could benefit. Not only has the learning platform helped millions to learn different languages, but now the app is capable of teaching math and music courses, which could supplement a child’s learning.

On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.