Grownup leisure platform OnlyFans appears to be outperforming the remainder of the tech sector. Its variety of creators and subscribers each grew in current months, in keeping with the corporate’s CEO Amrapali “Ami” Gan.

“We’re not seeing any slowdown,” Gan instructed Axios.

Do not miss

OnlyFans launched in 2016, however its reputation exploded in the course of the pandemic, when celebrities and bored common individuals alike caught in quarantine began creating their very own accounts and pushing content material.

However the rise of “sexfluencers,” or content material creators who deal with intercourse and relationships, provides a enjoyable lesson in market dynamics.

The economics of sin

Fictional mobster Tony Soprano as soon as stated there have been solely two companies that have been recession-proof: grownup leisure and “our factor.” Seems he was proper. Recessions push extra individuals into prison actions, in keeping with researchers on the LSE Centre for Financial Efficiency. In addition they increase demand for all types of grownup leisure, together with pornography, alcohol, playing and tobacco.

The phenomenon is so well-understood that traders and researchers actually have a time period for it: “sin shares.” Sin shares like Anheuser-Busch (NYSE:BUD) and British American Tobacco (NYSE:BTI) outperformed the S&P 500 in 2022 by large margins.

In the meantime, OnlyFans appears to have prevented a lot of the ache spreading throughout the tech sector. The corporate introduced just one minor spherical of layoffs in 2022, whereas media giants like Twitter and Netflix misplaced as much as 50% of their workforce.

In truth, OnlyFans is worthwhile. Since 2020, the platform has delivered no less than $500 million in web earnings to its proprietor, Leonid Radvinsky. Gan says the variety of content material creators has expanded to three million this yr. These “sexfluencers” mix sexual content material with conventional on-line influencer fashions to generate as much as $900,000 a month.

Story continues

Sadly, retail traders are lacking out on this entertaining progress story as OnlyFans stays a personal firm. And that’s not more likely to change as Gan says the group is “completely happy being privately held.” Nevertheless, there are different methods traders can guess on the grownup leisure sector in 2023.

Learn extra: 4 easy methods to guard your cash towards white-hot inflation (with out being a inventory market genius)

Strip golf equipment

RCI Hospitality (NASDAQ:RICK) operates over 40 strip golf equipment throughout the nation. CEO Eric Langan stated the corporate was “recession-resistant” and that “enterprise may be very, excellent and we’re persevering with to run document revenues quarter after quarter.”

Practically half (45%) of the corporate’s income is derived from alcohol gross sales, which are typically marked up in strip golf equipment. Put merely, the corporate has pricing energy within the midst of a recession and record-high inflation.

Within the fourth quarter of 2022, the corporate reported 29.9% progress in income and 71.6% progress in web free money move. The inventory is up 95.8% since July.

Playing

Gaming and Leisure Properties Inc. (NASDAQ: GLPI) is a specialised actual property funding belief that owns 57 casinos throughout 17 states. These on line casino properties are occupied by well-known manufacturers equivalent to Penn Leisure, Caesars Leisure, Boyd Gaming Company, On line casino Queen, Bally’s and Cordish Corporations.

All contracts are “triple-net” leases which places the corporate in a good place. GLPI inventory is up 8.5% over the previous yr.It trades at 21 occasions earnings per share and provides a 5.6% dividend yield.

Vice ETF

When you’d quite not decide particular person sin shares, there’s a fund that makes it simpler to guess on this phenomenon. AdvisorShares Vice ETF (NYSEARCA: VICE) has over $8.5 million in property below administration and holds sin shares like Heineken, Monarch Casinos and MGP Substances.

The inventory is up 6.5% over the previous six months.

What to learn subsequent

This text offers data solely and shouldn’t be construed as recommendation. It’s supplied with out guarantee of any variety.