IAC Interactive
While many investors want to value IAC Interactive (IACI: 25.03 0.00%) simply on their cash balances, savvy investors have been enjoying the ride in 2010. Since the beginning of the year, IAC’s shares have gained 12.6% and closed Monday at $23.07.

Web MD
Following on last year’s 63% gain, WebMD’s (WBMD: 46.11 0.00%) stock is off to another hot start this year. The health content network has seen their shares gain another 13.9% since the beginning of 2010 and closed at a new 52-week of $43.84.

Netflix
The Netflix story never seems to grow old. After gaining 84% in 2009, the internet stock is up an amazing 26.5% already in 2010. The company continues to outperform Wall Street’s expectations and investors may be eyeing double-digits soon.

Priceline
In 2009, Priceline’s (PCLN: 224.19 0.00%) stock nearly tripled in price. However, investors aren’t taking profits just yet. The stock is up 9.2% again in 2010 and today closed at a new 52-week high of $238.54.

Shutterfly
Finally we come to Shutterfly (SFLY: 24.82 0.00%) which today closed at $20.23. The internet stock suffered through a 78% drop in their share price in 2008. However, they rewarded investors with an amazing 155% return in 2009 and their shares are up 13.6% already in 2010.

With the exception of IAC Interactive, these internet stocks have delivered some very gaudy returns for investors over the last year. However, as the economy continues to improve and money flows back into the stock market, it appears as though they may still have room to run.

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.

Blue Nile (NILE: 50.00 0.00%)
Blue Nile is an online jewelry retailer specializing in diamond engagement rings.
2008 Revenue: $295 million

Bidz (BIDZ: 1.48 0.00%)
Bidz operates an online auction site that specializes in jewelry.
2008 Revenue: $207 million

Shutterfly (SFLY: 24.82 0.00%)
Shutterfly specializes in photography & related items.
2008 Revenue: $213 million

Overstock (OSTK: 19.73 0.00%)
Overstock.com is an online discount retailer that focuses on brand name merchandise.
2008 Revenue: $834 million

1-800 Flowers (FLWS: 2.24 0.00%)
1-800-Flowers.com operates as a gift retailer specializing in flowers.
FY 2009 Revenue: $714 million

Drugstore.com (DSCM: 2.73 0.00%)
Drugstore.com is an online retailer specializing in health and other household products.
2008 Revenue: $367 million

US Auto Parts (PRTS: 6.43 0.00%)
US Auto Parts operates a network of online retail websites specializing in aftermarket auto parts.
2008 Revenue: $153 million

Orbitz (OWW: 4.80 0.00%)
Orbitz operates a portfolio of online travel retail websites.
2008 Revenue: $870 million

Vista Print (VPRT: 31.99 0.00%)
Vista Print is an online retailer of marketing and small business print products.
FY 2009 Revenue: $516 million

You may have noticed some prominent exclusions within our ecommerce category with ecommerce giants Amazon.com (AMZN: 116.86 0.00%) and eBay (EBAY: 20.77 0.00%) not being mentioned at all. However, internet stocks with market caps of $5 billion or greater are included in our large cap internet stock category as we believe that the stock market evaluates those companies slightly differently.