The Internet Services and Retaining category had 6 companies on the list.

Google (#150), Amazon.com (#171), Libery Media (#275), Ebay (#326), Yahoo (#353) and IAC/InterActiveCorp (#370).

Microsoft (#44), Oracle (#137), and Symantec (#461) were listed in the Computer Software category. Dell (#34) and Apple (#103) were listed under the Computers, Office Equipment category.

Now lets take a closer look at this list of Internet and technology companies. See the above chart for reference. What is striking is that except for Dell, which is struggling to get back on track, these Internet, technology and software companies are greatly outperforming their Fortune 500 peers in the all important area of market capitalization. The dot.com days are long gone, so the bubble inflated values are not to blame.

So what is the reason behind investors' preference for these Internet-based companies?

These Internet stars are benefiting from the inherent virtues of the Internet. The Internet provides an efficient marketing and distribution platform. Additionally, a successful Internet company can expand rapidly domestically and internationally. In the early days of the Internet, detractors scoffed at the unprofitable Internet companies without paths to profitability. From the wreckage of the bubble implosion, companies with discipline and focus on profitability have emerged. These companies are growing fast, generating profits, and massively disrupting traditional businesses. Starting an Internet business becomes easier every day, which fosters an vibrant ecosystem where only the best emerge from the pack.

Despite Yahoo's likely removal from the Internet Serves and Retailing category, expect the representation from this group to continue to grow in the future. As long as investors are willing to bet their 401K plans on these Internet giants, the competition to join the list will be fierce.