onlyfans stock

OnlyFans Stock IPO: Can You Buy Stock in this Adult Entertainment App?

The following guide answers the question: Can you Buy OnlyFans Stock?

The unique stock could be one of the best-performing investments over the coming decade, but it could also be a tremendous flop.

Many ask the same question about other adult entertainment companies like Pornhub.

OnlyFans is an extremely non-traditional social media company based in the United States. It’s an intriguing investment opportunity.

If the IPO for this company follows through, OnlyFans has the potential to be one of the Best Undervalued Stocks of all time.

If IPOs interest you, check out our list of the Best Upcoming IPOs.

OnlyFans History

OnlyFans has a controversial history and vision on their company website.

“Founded in 2016, by British entrepreneur Tim Stokely OnlyFans has since become one of the leading global social platforms.

Tim’s vision was to develop a site where creators could monetize their content free of advertisers. He and his technical team brought this vision to life.

onlyfans stock ipo

Since then OnlyFans has grown to become part of the cultural zeitgeist accepting creators from all genres.

The onset of 2020 brought forth a significant rise in creator and fan growth.

Beyonce name-dropped OnlyFans on the “Savage Remix” cementing its importance as a top social platform.

OnlyFans continues to grow internationally and be a welcoming home for creators and their fans. Unlike other social platforms, OnlyFans is welcoming of all creator genres and their content.

The platform is designed to optimize creator engagement. When a creator posts, over 60% of their fans see and interact with the content.

Over 80% of direct messages sent by creators are seen and opened. Over 100 creators have earned over $1 million since monetizing their content on OnlyFans.

The platform continues to grow as more creators are using content as a way to connect with their fans.”

 

App Store Controversy

WSJ has been covering the app store controversy for OnlyFans.

“The money-sharing deal that powers OnlyFans wouldn’t work if the website operated as an app on the world’s biggest app stores, the social-media platform’s chief executive Tim Stokely said Thursday at The Wall Street Journal’s Future of Everything Festival.

Distributing OnlyFans through Apple Inc.’s App Store and Alphabet Inc.’s Google Play store would require additionally paying those companies the 30% cut they take from digital subscriptions.

That would mean creators wouldn’t be able to keep as much of the money they earn, Mr. Stokely said.”

Obviously, by keeping OnlyFans off the App Store or Google Play, they are limiting their user-growth potential.

User growth is undoubtedly the top metric for valuing a technology/social media investment.

Analysts are split over whether this is the best move for the company’s future. Also, it is unclear whether Apple or Google would allow the service on their platform.

OnlyFans Advantage – Free Content

What’s the best thing OnlyFans has going for themselves? Free creator content!

This is the same thing YouTube, Facebook, Instagram, and Twitter has baked into their business model.

OnlyFans Advantage: Free Content

Netflix, Hulu, and Amazon Prime are doling out billions a year for professional, unique content creation. OnlyFans doesn’t pay their creators a cent (out of their pocket initially).

In fact, creators are paying OnlyFans to effectively work off their platform. By keeping their personnel costs low, OnlyFans has tremendous free-cash-flow potential.

Bella Thorne Controversy

NBC has an excellent piece on the Bella Thorne controversy. This isn’t the first public relations nightmare for OnlyFans, and I’m sure it won’t be the last either.

“On the day in August that former Disney star Bella Thorne joined OnlyFans, a subscription site known for adult content, she made $1 million.

Before week’s end, she had made another million.

That was bad in itself. Sex workers are the majority of creators on the site, and here was a celebrity coming in and making more in a day than they could in a year.

Many sex workers rely on OnlyFans as their sole source of income during the pandemic, as in-person encounters became unsafe.

But what especially angered workers was how Thorne caused a wave of chargebacks that “broke OnlyFans” after fans accused her of promising a $200 pay-per-message nude photo that she then shied away from sending.

 

Shortly thereafter, OnlyFans changed its terms and conditions, limiting max subscription and tip payments and extending payout time by 23 days in 14 countries where fraud risk is deemed highest.

The company denies these changes were due to actions of any single user, but it’s hard to believe the backlash to Thorne didn’t factor into the decision.”

This nightmare enraged all parties involved: content creators, users who paid for a service, and the lawyers involved.

Sin Stocks and ESG

When it comes to determining OnlyFans’ future on the capital markets, it’s inevitable to consider the impact ESG investing will play.

ESG stands for “Environmental, Social, and Governance”. In laymen’s terms, ESG investors deeply care about the social mission behind a company’s financials.

Sure, oil and tobacco companies may have tremendous fundamentals, but they are viewed as drivers in climate change and premature cancer deaths.

So, investors will pass on investing in so-called “sin stocks”, no matter how high the earnings or dividend yield. Undoubtedly, OnlyFans would be viewed as a “sin stock”.

Can you imagine the headline “Berkshire Hathaway and Warren Buffett Purchase OnlyFans”? Yeah, right, in your dreams!

Personally, I can’t imagine there would be a lot of institutional demand for this social media play. This could be a drag on the future stock price.

OnlyFans Stock IPO?

The OnlyFans IPO date has not been set, but it is certainly possible the stock could become publicly traded in the coming years.

Social media and technology IPOs have been welcomed by retail investors, and they could even become the next “meme stock”, alongside AMC and Gamestop.

The OnlyFans IPO date has not been set, but it is certainly possible the stock could become publicly traded in the coming years.

Do I believe OnlyFans will ever go public? Yes, I do. I believe it’s more likely the company will be taken public via a direct listing or SPAC, rather than a traditional IPO.

Early investors are always looking for a liquidity event to diversify their investment holdings. They are eventually going to want to realize their paper profits. It’s happened time and time again with tech companies.

OnlyFans Stock Price

Bloomberg noted the latest funding rounds and valuation for OnlyFans.

“OnlyFans, a site where celebrities and adult-film stars charge admirers for access to videos and photos, is in talks to raise new funding at a company valuation of more than $1 billion, according to people with knowledge of the matter.

The startup, which is profitable, is working with an adviser to solicit interest from investors, said one of the people, who asked not to be identified because the discussions are private.

The idea is to find backers who can help it become more of a mainstream media platform and lessen its reputation for porn. OnlyFans handled more than $2 billion in sales last year.

Since the site takes a 20% fee, that means it had over $400 million in revenue.”

The next logical question to ask is, “Okay, OnlyFans is valued at $1 billion, so what will the OnlyFans stock price be?”

Well, this would depend on a multitude of factors. The following are in no way an exhaustive list.

  • Capital Structure
  • Board of Directors
  • Management Dividend Policy
  • Growth Projections
  • S-1 Filing

We do know from history, social media companies tend to keep their stock price below $100-200. This has no effect on overall enterprise value, but it makes the company appear “affordable”.

I would expect OnlyFans’ stock price to launch between $30-45.

Alternative Investments

Alright, maybe you’re not interested in buying a “sin stock” because you’re an ESG investor. What are some other tech/social media alternatives?

Can You Buy Stock in OnlyFans?

Sadly, no, OnlyFans stock cannot be purchased by retail investors. An OnlyFans IPO or direct listing is expected during the coming years. Investors should check EDGAR, an SEC website, for an S-1 filing.

OnlyFans Stock FAQ

Can You Buy OnlyFans Stock?

At the moment you cannot buy stock in OnlyFans, but you will be able to purchase shares in any future IPO.

When is the OnlyFans Stock IPO?

OnlyFans has not yet filed for an IPO, but an IPO is expected in the coming years.

How Much Will OnlyFans Stock Cost?

The price is expected to range from $30-45 per share.

Will OnlyFans become a meme stock?

OnlyFans is likely to become a meme stock.