While the recent ruling of Proposition 22 could threaten the gig economy’s prospects in the near term, the gig economy is expected to grow exponentially in the long run with the increasing demand for more flexible working arrangements. So, it could be smart to add gig economy stocks such Uber (UBER), Lyft (NASDAQ:LYFT), and Upwork (NASDAQ:UPWK) to your watchlist now.Even though the gig economy received a boost during the pandemic, the recent ruling by California Superior Court Judge Frank Roesch that Proposition 22 is unconstitutional could serve a blow to companies capitalizing on the gig economy. Nevertheless, workers’ increasing demand for flexible and contractual work is expected to drive the gig economy’s growth.
According to brodmin’s research and data provided by Mastercard Incorporated (NYSE:MA), the global gig economy is expected to be worth almost $350 billion in 2021. Moreover, investors’ interest in the gig economy stocks is evident from the SoFi Gig Economy ETF’s (GIGE) 6.4% return over the past month.
So, it could be wise to add gig economy stocks such as Uber Technologies, Inc. (NYSE:UBER), Lyft, Inc. (LYFT), and Upwork Inc. (UPWK) to your watchlist. Wall Street analysts expect them to rally by more than 45% in the near term.