Thinking about adding OnlyFans stock to your portfolio when there is an IPO in the future? Here’s what to know before buying OnlyFans stock when it’s available to the public.
Due in part to the global Covid-19 pandemic, OnlyFans has seen a growth not only in users and subscribers, but also in sales and revenue.
In fact, according to Yahoo.com, OnlyFans generated over $400 million revenue in 2020. They “handled more than $2 billion in sales [in 2020]…They have paid out over $3 billion to the more than 1.25 million creators on its platform. It has over 130 million registered users.”
If and when there is an IPO, the stock will likely be hot.
But buying OnlyFans stock, as buying any individual stock, should be approached with caution.
If you’re curious how to go about buying OnlyFans stock when it’s available to the public, here’s how to do it.
1. Research the Company.
Just because OnlyFans has been growing does not mean its stock will be hot as well. Taking the time to research the company can help you make an informed decision as to whether you should add it to your portfolio.
Currently, OnlyFans does not have any stock or share, and there is no OnlyFans IPO date. In other words, the company is private. However, it is expected to go public soon.
Recently, there was a rumor that OnlyFans was looking to conduct an IPO. For instance, on August 19,2021, according to Bloomberg.com, the company announced that they would ban sexually explicit content from its platform. While, they rescinded it a week later, it kind of signaled that they are raising money to go public.
The key, in the meantime, is to research OnlyFans, as a company, to see if its stock will be a good investment for you.
OnlyFans is a social platform that connects content creators to their fans. The company was founded in 2016 by Timothy Stokely, CEO. It is owned by Fenix International Limited.
OnlyFans has over 200 employees, has over 150 million registered users and over 1.5 million content creators. To date, the company has paid out over $3 billion in creator earnings.
While the platform is well known for its adult contents, OnlyFans attract artists from all genres.
Once OnlyFans goes public, you will be able to purchase the stock with a brokerage account.
Here are some trading platforms to purchase OnlyFans stock or other stocks: Stash Invest, Robinhood, M1Finance.
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2. Whether OnlyFans stock fits into your portfolio.
Once you’ve decided that OnlyFans is right for you personally, the next step is to decide if its stock will align with your investment goals and risk tolerance.
OnlyFans is in the subscription service sector, and that means it can add diversification to your portfolio.
For many people especially beginner or conservative investors, the best way to do that is through mutual funds or index funds. Rather than buying individual stocks, they invest in mutual funds that expose them to a range of different stocks.
So, if one stock within the fund is not performing well, the other stocks balance it out, thus spreading the risk. A Vanguard mutual fund and many other companies will likely hold shares of OnlyFans when they are available.
3. How much you should invest in OnlyFans stock?
While the stock is not yet available to purchase, you should be thinking how much money to invest. Some of the most expensive stocks trade for thousands of dollars a share.
OnlyFans stocks, at least in the beginning, will not likely be worth that much. Expect it to be below $100.
Regardless of the price, you should invest your money in a stock that is likely to grow in value in the long term. In other words, make sure OnlyFans stock is a good value stock.
One of the best indicators of whether a stock has a good value is the PE ratio. The P/E ratio measures the price of the stock relative to the company’s earnings or profits, giving you a good sense of the stock’s value.
So, the P/E ratio is very important in evaluating a stock.
Another indicator is a dividends. Dividends is money the company pays yearly or quarterly to its shareholders.
Most US companies pay out dividends. But the ones that have consistently paid dividends, during good and tough time, are usually good ones.
So, the stock price alone does not tell the whole picture of a stock.
The bottom line is while OnlyFans stock is not available to the public yet, there is reason to believe that it will go public soon. Once that happens, make sure you have a brokerage account to invest.
However, make sure the company aligns with your investment goals and decide whether it will add diversification to your portfolio.
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