Why the SEEK (ASX:SEK) share price just hit a record high

The SEEK Limited (ASX:SEK) share price has continued its positive run and reached a record high on Thursday. Here's why…

The SEEK Limited (ASX: SEK) share price has continued its positive run on Thursday.

In fact, at one stage today the job listings giant's shares climbed to a record high of $24.94.

When the SEEK share price hit that level, it meant it was up an impressive 122% from its March low of $11.23.

SEEK Share Price

Why is the SEEK share price at a record high?

Investors have been bidding the SEEK share price higher this week after news of a potentially effective COVID-19 vaccine sparked hopes of a swifter than expected global economic recovery.

Pfizer's early data from its phase three trial was pointing to 90% effectiveness, which is materially better than the company was predicting.

A quicker economic recovery could be great news for the company as it has the potential to be supportive of job openings and ultimately job listing volumes on its platform.

In fact, CEO Andrew Bassat has previously predicted a strong rebound in SEEK's financial performance when labour markets return to normal.

At its full year results, Mr Bassat commented: "SEEK's short-term results will be negatively impacted by the challenges of COVID-19. Over the longterm, our strategy and overall revenue opportunity remain intact albeit COVID-19 will likely impact the timeframe to achieve our A$5b revenue aspirations. We are confident in our strategy and growth prospects, and as a result we will continue to invest across ANZ, Asia, Zhaopin, OES and ESVs."

"When labour markets return to more normal conditions, we expect to generate a high ROI given our market leadership and track record of generating strong returns from investing in product, technology and data," he added.

Not everyone is smiling.

The strong performance of the SEEK share price isn't good news for everyone.

At the start of the month offshore short seller, Blue Orca, took aim at SEEK's Zhaopin business. It claimed it was full of fake listings and CVs.

While this initially dragged the SEEK share price lower, investors have now shrugged this off, much to the dismay of the short seller.

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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