Facebook’s IPO on Tuesday gave the company a stunning $1 billion valuation.
The stock had risen sharply in recent months, with the social network raising nearly $200 million in a public offering that also valued the company at $5 billion.
But analysts on Wall Street expected the stock to fall.
Facebook’s stock jumped nearly 14 percent in after-hours trading on Wednesday morning.
The company has about 17.5 million users.
Its IPO is expected to generate $7.2 billion in revenue for Facebook shareholders.
Shares of Twitter also jumped as investors rushed to cash out of their portfolios.
Shares rose nearly 14% in after hours trading on Tuesday morning.
Shares jumped nearly 7% in the day’s opening trading.
Twitter shares rose nearly 6% in trading on Monday and closed at $23.90.
Facebook shares were up just 0.7% in early trading on Thursday.
Twitter is the fourth-largest social network by users, according to comScore.
The social network reported net income of $872 million in its fiscal second quarter.
Facebook also reported net revenue of $1,964 million for its second quarter and $1 million in operating income.
Facebook said the earnings will be split between shareholders of $4.1 billion and $4 billion.
The firm has been investing heavily in its advertising business.