Twitter Is Worth $8.6 Billion: Hamadeh

Twitter stock, available through private and secondary markets, could double by the time of its IPO, PrivCo CEO Sam Hamadeh said Wednesday.

"The fact is Twitter, frankly, is a low-cost cash machine, and they've just turned on that spigot last fall," he said.

The privately held social media giant trades at a valuation of "roughly $8.6 billion," he said on CNBC's "Fast Money."

What's more, the company could see a huge jump in valuation when it goes public, Hamadeh added.

"We think it's a 'double' in a year," he said.

Hamadeh shared information about the company, which does not have to release quarterly earnings reports publicly.

"Last year, they did $245 million in revenue. This year, they're going to exceed $500 million. We expect a billion next year," he said. "They have 40 percent operating margins. It's literally a cash register. When you're buying into Twitter, you're buying a cash machine."

However, only accredited investors with financial assets of at least $1 million or earnings of at least $250,000 a year are eligible to purchase shares on private markets or secondary markets.

"If you cannot buy it on secondary market because you're not accredited, you can actually do it indirectly, not a pure play but through a couple of public vehicles," he said.

Trader disclosure: On Feb. 27, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long GS; Jon Najarian is long JPM; Jon Najarian is long PCLN; Jon Najarian is long KORS CALL SPREAD; Jon Najarian is long CZR; Jon Najarian is long CHRW; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is short SPY; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long CSCO; Tim Seymour is long SBUX.