Twitter 'isn't overvalued' says technology writer

Twitter has increased the asking prices for its shares this week by 25% to $23-25 because of the high level of demand.

The social networking company, which is due to be floated on the New York Stock Exchange, could now be valued at more than £8bn despite the fact it has never made a profit. So have the shares been overvalued?

Paul Sloan, Editor in Chief at Technology Website CNET, told BBC Radio 5 live's Wake Up to Money: "If people will pay for it - it isn't overvalued."

He added: "It's a belief that it's going to grow really fast and... it will churn that revenue stream and that high usage into profit. It's a pretty simple proposition, risky as though it might be."