Social media and gig economy stocks rallied on Wednesday. By the close of trading, shares of Pinterest (NYSE:PINS), Upwork (NASDAQ:UPWK), and Fiverr International (NYSE:FVRR) were up 7%, 14.2%, and 17.7%, respectively.
After Pfizer and BionTech reported exciting results from their phase 3 clinical trial for their coronavirus vaccine candidate on Monday, many investors sold stocks that performed well during the COVID-19 crisis and bought companies that could benefit from an economic recovery.
On Wednesday, investors apparently decided the sell-off was overdone -- and the resulting buying frenzy drove shares of Pinterest, Upwork, and Fiverr sharply higher.
It's true that the coronavirus pandemic is accelerating the trend toward freelancing, but the gig economy was growing rapidly even before COVID appeared. Platforms like Upwork and Fiverr that connect freelancers with businesses seeking their services are likely to see an influx of new users in the coming years, regardless of whether a coronavirus vaccine helps to end the health crisis sooner than expected.
Moreover, while social media networks have experienced higher user engagement during the pandemic, a vaccine is unlikely to slow their long-term growth. In fact, Pinterest could see a rebound in advertising spending in areas such as travel and entertainment once the COVID-19 crisis subsides.