Seek Becoming Expensive Considering Investments Are Yet to Pay Off

Seek’s share price has performed well in 2019, rising 36% and outperforming the 20% increase in the S&P/ASX 200 Index. To some degree, Seek’s 2019 performance benefited from the global technology stock sell-off in late 2018, which pushed its share price down before the start of the year. Over the past two years, the stock is up 23% versus the 12% rise in the index. The relatively weak longer-term performance reflects a tug-of-war between those investors who are comfortable with management’s decision to sacrifice short-term profits for long-term growth, and those who disapprove of the strategy.