Twitter’s huge losses do not spell the end for the micro-blogging website despite billions of pounds being wiped off its share value just months after its IPO, say experts.

Twitter shares fell 24 per cent on Thursday to just 50p each after the website reported losses of more than $511 billion (£313 million) in 2013.

The site has never made an annual profit, largely due to constant investment in the platform and functionality, but in 2012 it lost just over £5 million, a fraction of the 2013 deficit.

Nevertheless, analysts – who expected the big losses – say there are underlying signs of strength in the business, such as its revenue from 1,000 timeline views climbing 76 per cent in 12 months.

Big spending on research and development could also bear fruit soon with the potential of Twitter Amplify and Tailored Audience not yet fully realised.

“Most of Twitter’s R&D spending goes towards personnel-related expenses and in the long term they have a number of products still to be fully utilised,” said Dr Sotirios Paroutis, a professor at Warwick Business School.

Twitter’s revenue climbed 110 per cent last year, despite the number of timeline views dropping overall.