Snapchat’s parent company shares have fallen to a tune of 35% due to slow growth of its revenue

A day after the business released poor second-quarter data, shares of Snap plunged 35% on Friday.

Snap’s top and bottom line results fell short of Wall Street projections, and the company announced it will restrict recruiting. The business blamed a difficult economic climate, waning interest in its online advertising platform, Apple’s 2021 iOS release, and rivalry from businesses like TikTok for its poor performance.

Despite the current challenges, the business stated, “We are not content with the results we are producing.”

Snap’s stock has decreased 77 percent so far this year. Wall Street isn’t slowing down either. Several analysts downgraded it after the most recent earnings release.

The analysts at Goldman Sachs reduced their rating from buy to neutral and stated that Snap’s report was “broadly unfavourable.”

Open concerns will still exist about how peculiar this relationship is, they added. “Our own industry checks over the prior two months were subdued but more upbeat than this earnings announcement,” they said.

While the firm did not specifically mention TikTok, JPMorgan analysts downgraded Snap’s stock and stated that they believed TikTok’s quick monetization growth and high engagement were negatively affecting Snap’s business.

The absence of CEO Evan Spiegel from the analyst Q&A and his lack of up-front commentary also worried the JPMorgan analysts. They reiterated that Snap needs to “re-establish a track record of execution,” stating that Snap “has an even harder hill to climb going forward” in light of the 2Q results and the way the call was handled.

According to Snap, revenue this quarter is “about flat.” For the third quarter, it stated that it did not issue guidance because “forward-looking visibility remains exceedingly tough.”