Twitter shares jump on flotation

<p>Shares in Twitter shot up yesterday.</p>

The share price of Twitter rocketed yesterday (November 7th) as the technology company floated on the New York Stock Exchange.

Stocks in the firm were up for sale at around the $25 (£15.50) mark at the start of the day, but rose by 73 per cent to close a successful first session on the index.

The share price of the company was as much as 80 per cent higher at one point in the session, but settled back to close at 44.90.

Mary Jo White, head of US regulator the Securities and Exchange Commission, explained investors have to be careful with technology stocks such as Twitter – which is yet to record a profit since it was founded.

"In the absence of a clear description, it can be hard not to think that these big numbers will inevitably translate into big profits for the company," she said, adding: "But the connection may not necessarily be there."

The value of Twitter rose above the $4 billion mark at one point during the session on the New York Stock Exchange, even though the company currently has few ways of making money out of its 230 million users.

Twitter has begun selling advertising on its social networking site, but faces a complex road to making profit in the future.

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