One of the many negative effects of the pandemic was massive job loss. This led workers to find gig jobs at companies such as Airbnb (ABNB), Uber Technologies (NYSE:UBER), and Fiverr International (NYSE:FVRR). Now that the economy is rapidly improving and job prospects are bullish, these stocks should be avoided.Gig economy stocks have taken off during the pandemic. The rise was somewhat justified as more businesses turned to gig workers and more people turned to gig employment during the pandemic.
However, now that we are emerging from the pandemic, gig economy stocks are clearly overvalued. Job-seekers and employers who turned to the gig economy during the pandemic will now largely return to traditional work-employee relationships. This spells bad news for gig economy stocks.
Let's take a quick look at three gig economy stocks that are overvalued and primed for a decline: Airbnb (ABNB), Uber Technologies (UBER), and Fiverr International (FVRR).