Top Internet Stocks in February 2010

The month of February brought a much-needed rally to the markets following the sell-off we saw in January. The Dow Jones Industrial average gained nearly 258 points in February or 2.6%. The technology-focused Nasdaq gained 4.2%. Although the major indexes are still down for the year, strong earnings results helped to lift February’s performance.

Of the 38 internet stocks that we follow, 22 stocks posted gains for the month versus only 15 losers (eBay (EBAY: 20.77 0.00%) was unchanged for the month).

Here is a look at the performances of the top internet stocks in February.

Open Table
Open Table shares soared 37% in February and were by far the top internet stock of the month. The stock jumped 23% following better than expected earnings results on February 9th and has been trending higher ever since.

Shutterfly
Shutterfly (SFLY: 24.82 0.00%) stock gained 21.3% for the month. The company handily beat fourth quarter consensus earnings estimates and provided 2010 guidance that was above Wall Street’s expectations.

zipRealty
zipRealty’s 20.2% increase last month is positive news for real estate investors. ZIPR’s big gain can’t be attributed to company specific events, but rather in increasing optimism that the housing market is beginning to recover.

Drugstore.com
Solid earnings results on February 9th sent Drugstore.com’s (DSCM: 2.73 0.00%) shares up 16% the next day and drove the stocks impressive monthly performance.

Priceline
Over the past few months, few stocks have been hotter than Priceline (PCLN: 224.19 0.00%). So it’s probably no surprise that the internet travel stock was one of February’s top performers. Priceline’s stock jumped 16% for the month following tremendous quarterly results that saw their gross bookings accelerate to 53% y/y growth.