Snap reported disappointing second-quarter ad sales, along with its warning of an uncertain outlook moving forward.

And as such, other renowned tech giants, such as the Facebook parent, Meta, and the owner of Google, Alphabet, which heavily sells ads on their platforms, plummeted their share prices.

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The Snapchat log-in page is displayed on a mobile phone, March 1, 2017 in Glendale, California.

Snap Reports Dismal Ad Sales

As per the latest news story by Reuters, the owner of Snapchat, aptly named Snap, reported its poor second-quarter earnings.

The firm behind Snap admits that it has missed its initial earnings goal for the April to June period of the year.

On top of that disappointing quarterly revenue, Snap also boldly warned that the coming months might be more difficult than ever.

Snap issues a warning, saying that "forward-looking visibility remains incredibly challenging."

According to a recent report by Bloomberg, the revenue growth of Snap in the last three months only posted roughly 13 percent, which is equivalent to $1.11 billion.

The social media giant confirmed that its second quarter of 2022 earnings falls behind the expectations of analysts that Snap would book at least $1.14 billion of earnings from the start of April to the end of June.

Ad Sales Slowing Down?

Snap notes in its earnings report that advertisers have cut down their current budgets, which slow down their purchases from ad space sellers like Snapchat.

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SAN ANSELMO, CALIFORNIA - FEBRUARY 03: In this photo illustration, the Snapchat logo is displayed on a cell phone screen on February 03, 2022 in San Anselmo, California.

The social media firm says that the latest trend of advertising slowdown is caused by the overall uncertainty in the economy, which hints at a looming recession.

Snap sent a letter to its investors, explaining why advertisers have suddenly cut down their spending in the second quarter of the year.

The letter to Snap investors offers that "the combination of macroeconomic headwinds, platform policy changes and increased competition have limited the growth of campaign budgets."

And as a result, Snap says that its earnings in the last quarter did not reflect its expectations.

The tech giant tells its investors that it is "not satisfied with the results we are delivering, regardless of the current headwinds."

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Facebook's Meta, Google Shares Slump

The latest earnings report from Snap has heavily affected its share price.

Reuters states in its report that the Snapchat owner lost about 26% of its share price. It depressingly balloons the overall loss of Snap for the whole year to roughly 70%.

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In this photo illustration, three screens display the splash page for the Meta page on the facebook website on October 29, 2021 in London, England. The Facebook company, which owns Facebook, Whatsapp and Instagram, has announced that it is rebranding, changing it's name to "Meta".

Besides Snap, the owners of giant platforms like Google and the social media network, Facebook, also faced a slumping share price.

As of writing, the parent firm of Facebook and Instagram, Meta, has already lost 5% of its share value.

On the other hand, the Google firm, Alphabet, fell by about 3%, whereas the social media giant, Twitter, lost roughly 2%.

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Written by Teejay Boris