The executive has gone on to raise billions of dollars from pitching VC funds, and AppLovin’s CEO is now worth $11 billion. Here’s how to do it

When Adam Forogi knocked on the doors of venture capitalist (VC) funds for his company, AppLovin, in 2012, he was turned down by everyone. Now, more than 12 years later, in 2024, he is among the top 260 richest people in the world, according to a report by Bloomberg.

He added that Fologi, who is ranked 251st on the Bloomberg Billionaires Index (BBI) among the world’s 500 richest people with a fortune of $10.9 billion, earns billions of dollars from his companies.

AppLovin stock price soars

The Silicon Valley-based marketing services company’s stock price soared 4% on Nov. 7, giving it a cumulative seven-fold increase by 2024, according to the report. As of Friday, November 8th, AppLovin stock was trading at $290.01, giving the company a valuation of $102. Billion. And Fologi, who owns 10 percent of the company, has seen his net worth balloon as a result.

Foroughi said on the earnings call that AppLovin is on track to achieve up to 30% annual growth, in part due to the impact of Axon 2.0. Furthermore, in its second quarter results, the company reported higher profits and revenue than analysts expected, underscoring its expanded focus on e-commerce.

LSEG said third-quarter sales rose 39% to $1.2 billion, beating the average estimate of $1.13 billion. AppLovin also expects fourth-quarter sales to be between $1.24 billion and $1.26 billion, representing approximately 31% growth compared to analysts’ expectations of $1.18 billion.

CNBC reports that AppLovin is up 519% this year, outpacing even AI tech darlings Nvidia and Palantir.

Industry watchers are positive about growth

In a note to investors, Wedbush Securities’ Michael Pachter said AppLovin’s performance “remains impressive,” according to BB Report, and reiterated his Outperform rating, adding, “At current levels, there is a downside to the stock. is almost never seen.”

The company’s rapid growth is mainly due to its “success” in implementing artificial intelligence (AI). AppLovin counts its AI-powered Axon 2.0 ad engine among its digital marketing services for mobile app developers, which it says “beat expectations” in its third quarter earnings report.

Eva Ados, chief investment strategist at EntrepreneurShares, told Fox News that she “still loves Aprovin.”

According to Bloomberg, an AppLovin spokesperson did not respond to inquiries.

Adam Forogi — From trader to billionaire company owner

Born in Tehran, Iran in 1979, Mr. Foroghhi immigrated to the United States with his family as a child. He graduated from Berkeley in 2001 and first worked as a derivatives trader. From there, he launched two ad tech startups before co-founding AppLovin in 2012, according to the report.

After being turned down for venture capital funding, Forogi launched the business himself with the help of angel investors and took out $280 million in market financing in 2018 to grow the company. “It makes sense to raise capital this way, rather than selling stock and diluting it,” he said at the time.

He retained shares in the company. Currently, AppLovin competes with Meta and Alphabet in the digital marketing space and has 1.4 billion daily active users. It added that it is focusing on marketing strategies for smartphone users, mobile games and interactive advertising.

AppLovin’s IPO debuted on the Nasdaq exchange in 2021, and Notably, Foroughi’s 10% stake represents 99% of his net worth, according to BBI data.

(Based on information from Bloomberg)