OnlyFans, an internet platform dominated by “sexfluencers,” is not slowing down despite the technological downturn. But it’s personal. Here are 3 fast growing stocks you can buy

Adult entertainment platform OnlyFans seems to be ahead of the rest of the tech sector. According to Amrapali “Ami” Gan, CEO of the company, the number of its creators and subscribers has grown in recent months.

“We are not seeing any slowdown,” Gan told Axios.

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OnlyFans was launched in 2016, but its popularity skyrocketed during the pandemic, when celebrities and bored ordinary people stuck in quarantine started creating their own accounts and promoting content.

But the emergence of “sexfluencers,” or content creators who focus on sex and relationships, offers a fun lesson in market dynamics.

Economics of sin

Fictional mobster Tony Soprano once said that only two businesses are recession-proof: adult entertainment and “our business.” It turns out he was right. According to researchers at the London Stock Exchange’s Center for Economic Efficiency, recessions are pushing more and more people into criminal activity. They also increase the demand for all kinds of adult entertainment, including pornography, alcohol, gambling and tobacco.

This phenomenon is so well understood that investors and researchers have even coined a term for it: “sinful stocks.” Sin stocks like Anheuser-Busch (NYSE:BUD) and British American Tobacco (NYSE:BTI) outperformed the S&P 500 by a significant margin in 2022.

Meanwhile, OnlyFans seems to have avoided much of the trouble that is spreading across the tech sector. The company announced just one minor round of layoffs in 2022, while media giants like Twitter and Netflix lost up to 50% of their workforce.

In fact, Only Fans profitable. Since 2020, the platform has brought its owner Leonid Radvinsky at least $500 million in net profit. Gan says the number of content creators has increased to 3 million this year. These “sexfluencers” combine sexual content with traditional online influencer models, earning up to $900,000 a month.

Unfortunately, this interesting growth story is being overlooked by retail investors as OnlyFans remains a private company. And that’s unlikely to change as Gun says the team is “happy with being privately owned.” However, there are other ways investors can bet on the adult entertainment sector in 2023.

Read more: 4 Easy Ways to Protect Your Money from White Hot Inflation (Without Being a Stock Market Genius)

Strip clubs

RCI Hospitality (NASDAQ:RICK) operates over 40 strip clubs across the country. CEO Eric Langan said the company is “recession resistant” and that “business is doing very, very well and we continue to have record earnings quarter after quarter.”

Almost half (45%) of the company’s revenue comes from the sale of alcohol, which is usually marked up in strip clubs. Simply put, the company has price power in the midst of a recession and record high inflation.

In the fourth quarter of 2022, the company reported 29.9% revenue growth and 71.6% net free cash flow growth. Shares are up 95.8% since July.

Gamble

Gaming and Leisure Properties Inc. (NASDAQ: GLPI) is a specialized real estate investment fund that owns 57 casinos in 17 states. These casinos are owned by well-known brands such as Penn Entertainment, Caesars Entertainment, Boyd Gaming Corporation, Casino Queen, Bally’s and Cordish Companies.

All contracts are “triple net” leases, which puts the company in an advantageous position. GLPI shares are up 8.5% year-over-year. Their earnings per share are 21 times higher and the dividend yield is 5.6%.

Vice ETF

If you prefer not to pick individual stocks of sin, there is a fund that makes it easy to bet on this phenomenon. The AdvisorShares Vice ETF (NYSEARCA: VICE) manages over $8.5 million in assets and holds stocks such as Heineken, Monarch Casinos and MGP Ingredients.

Shares are up 6.5% over the past six months.

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This article provides information only and should not be construed as advice. It is provided without any warranty.

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