Twitter Tests New 'Buy' Button

The social media site is trying to make E-commerce an addition.
4:16 | 09/08/14

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Transcript for Twitter Tests New 'Buy' Button
I'm Caroline Costello in new York and as Wall Street closures from Monday September 8. This is story stock today a look at -- -- social media -- took a fledgling flight into the world e-commerce today and investors. They bought -- To read LD Iranian 140 characters or less I'm joined now by Aaron task from finance. Hi Aaron I'm. Why is the big news from Twitter today -- is hoping -- -- work. Well -- 140 character -- can be a challenge but -- I'll try. Such critters can allow you to buy stuff with a touch of a button directly through Twitter. I think that was -- -- forty wow here. We had a 140. OK get -- they're there they're basically like a lot of other companies are trying to -- the commerce happen instantly got to be in a shopping say necessarily but. They're gonna. Sell to advertisers the opportunity. For them to pitch their -- -- directly on Twitter and then with a one touch you can buy that product that's the the hope here at least the goal. Democrat at the long and short of it and once you get your credit card information stored there it's gonna be what two clicks and you and you bought something so it could be huge for promotional Bush's. It could be huge for promotional push is that there is -- and -- partners saying that Twitter could be the leading destination. For mobile commerce because it is because of the way consumers in Iraq without her ads on Twitter as opposed to -- -- and to Graham. -- but the reality is all the big social networks are working on similar type programs is to -- now has something where there. You know certain. Retailers on their -- rampages you can buy the -- that you -- and insert them by touching that item FaceBook is working on this as well. And and it's a huge potential opportunity for all these companies to generate money and that's why you saw that -- the stock that. OK yeah let's talk about that investors like this idea talk us. Through the two day Twitter stock chart what happened. Right well UCL -- sharp move up today in otherwise down to flat day on Wall Street so whenever you see an up movement and down -- -- that. Big double takes -- something big is going on. Again some analysts in the street -- are things can be a really huge opportunity. For Twitter that the estimates are that your total e-commerce sales this year going to be -- 300 billion dollars. -- about sixty billion dollars of that is going to be on mobile devices Twitter is very -- on mobile. Again if they can capture 10% of that this year and it just it's it's a revenue opportunity for them that. In theory didn't exist yesterday or didn't have a way to monetize it and now they do you at least they think they -- you. OK and so unlike FaceBook. In the past we haven't seen Twitter have an easy time monetizing ads on its site so could this be the answer to sort of that problem. Well that's -- opening that's what you're seeing reflected in the stock today. No they they have struggle and and FaceBook struggle to probably -- they forget the rate formula for selling ads particularly on mobile. But once they did you saw that stock take off like rockets again I think a lot of people are looking at Twitter saying it -- -- get a piece of the action. And do. A percentage of the kind of -- that FaceBook is doing on mobile it can be very big for their bottom line is -- still relatively small company. And every incremental bit of revenue helps and this is potentially a big revenue source for them. Because -- you've gotten people who are on Twitter accustomed to seeing as in the stream. And now it's -- going to be an -- it's going to be the opportunity for you to buy something directly which makes that place and much more valuable for Twitter sales team. Especially if -- sale only last for the next twenty minutes or something find out exactly yes and they're they're testing it now with -- products aren't available elsewhere. It's inching their starting up a lot of music acts and -- and Keith Urban to mega death. Which is something that you wouldn't probably we see on the same radio station program together but retailers like Home Depot burglary as well -- -- part of this. The first launch -- in the soft launch of this and they're gonna test it out and it's yet flies but I suspect if you're on Twitter. You're gonna see a lot more of these ads that have got by -- -- in the coming days and weeks. OK Aaron test thank you so much of Yahoo! finance thanks for joining us. And you've been watching story stocks he would For your latest headlines I'm Carol Costello in New York.

This transcript has been automatically generated and may not be 100% accurate.

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