internet stocks

What's going on?

WTF
CRZ
REA
WEB

All doing it hard, compared to the banks

The hard thing about the internet stock is how do you value them.

If they get it right they become great business that generate a heap of cash, just look at the profit they generate, but many are very expensive with REA at PE of 35, how do you justify that? or CRZ at PE of 25.

But the thing is they are a bit different, yes I know very dangerous thing to say this time its different and it never is.

But look at CRZ and REA, they dominate the marketplace in their segment, sure there is no reason that someone cant come in, and compete with them, but if your a seller of a car or a house where do you go, you go to the biggest market.

I just a sold car with carsales,  very painless, and had a heap of calls.
Having previously advertised in the local paper with only one call.

so these internet companies tend to dominate, who's going to beat Google.

may be if you can buy these companies at PEs below 35 you should buy them?

WTF
http://markets.ft.com/research//Markets/Tearsheets/Financials?s=WTF:ASX&subview=IncomeStatement&period=a

REA
http://markets.ft.com/research//Markets/Tearsheets/Financials?s=REA:ASX&subview=IncomeStatement&period=a

WEB
http://markets.ft.com/research/Markets/Tearsheets/Summary?s=WEB%3AASX

Performance
Code	Buy date	buy price	current	Sell Date	Sell price	Profit(loss)
EPW	21/05/2014	$1.905	$1.905			0.00%
CRZ	23/05/2014	$10.530	$10.590			0.60%
CCL	26/05/2013	$9.690	$9.700			0.10%
SEA	26/05/2013	$1.035	$1.040			0.05%