Snap's share price dropped 38% Friday after the company announced disappointing results for the second quarter.

After missing Wall Street expectations, it said it would slow hiring. Apple's 2021 iOS update, competition from companies like TikTok, and a challenging economy contributed to Facebook's poor results

“In spite of the current headwinds, we are not satisfied with the results we are delivering,” the company announced.

Snap's stock has fallen more than 78% so far this year. Wall Street seems to be moving forward as well. Analysts downgraded the company following its latest earnings report.

The analysts at Goldman Sachs downgraded the stock rating of the company from buy to neutral after reviewing the earnings report.

Since the beginning of the year, our own industry checks have been muted, but more optimistic than this earnings report.

Next week, Alphabet and Meta report earnings, so it will be interesting to see how idiosyncratic this dynamic turns out to be.

JPMorgan analysts also downgraded Snap shares but did not specifically mention TikTok's impact on Snap's business despite TikTok's rapid growth and strong engagement.

Analysts at JPMorgan were also concerned that CEO Evan Spiegel was silent during the analyst Q&A portion of the earnings report, and did not offer any upfront comments.

With the results of 2Q and how the call was handled, Snap has an even bigger hill to climb," they said, adding that the company should "re-establish a track record of execution."

According to Snap, revenue this quarter is "approximately flat." The company did not provide third-quarter guidance because "forward-looking visibility remains incredibly difficult."