Now more than 80% below its 52-week high, is there any hope for Snap (NYSE:SNAP) stock?

The social media company behind platforms such as Snapchat and Bitmoji has seen its share price fall 70% this year to $14.11. In September of last year, SNAP stock was trading at an all-time high of $83.34 per share. The steep fall from grace has resulted from investors bailing out of high growth tech stocks and moving capital into more cyclical stocks and blue-chip names.

However, Snap has also contributed to its own demise in recent months due to big earnings misses and slowing advertising growth on its platforms.

Downward Revisions

SNAP stock had been keeping its head above water for much of this year until May when management said the company expects to generate lower revenue and earnings and scale back hiring for the remainder of this year, leading to a one-day drop of 40% in the share price. The Snapchat social media platform currently has 332 million active users, and since it is free to use, the company generates revenue by posting advertisements on its app and website. Reports of a slowdown in advertising revenues on the social media platform have prompted investors to reach for the “sell” button.

Owing to a drop in advertising, Snap reported first quarter results that missed Wall Street targets across the board. The company announced a Q1 earnings-per-share (EPS) loss of 2 cents compared to the 1 cent per share that was expected by analysts. Revenue came in at $1.06 billion compared to $1.07 billion that was anticipated. The company also reported “Global Daily Active Users” of 332 million, which was only slightly better than the 330 million that had been expected. And “Average Revenue Per User” was $3.20 versus $3.25 that was expected on The Street.

Apple Issue

Slowing advertising and declining revenues are not the only issues afflicting Snap. The company is also struggling to manage Apple’s (NASDAQ:AAPL) changed advertising tracking policies that have made it challenging for marketers to target ads with potential customers. Snap’s leadership team has singled out Apple’s shifting ad-tracking policies as a major headwind for the company, and a challenge that could persist for many years to come. Snap is not the only social media company impacted by the change in Apple’s advertising tracking mechanisms.

Also, Snap is contending with rising competition from Chinese video sharing app TikTok. Snapchat, which is used to share photos, videos and drawings, has named TikTok as its biggest competitor and a threat to its business. Reports that the U.S. federal government in Washington, D.C. is considering banning TikTok over national security threats posed by the Chinese app are no doubt welcomed by Snap. However, the competition from TikTok is just one of many challenges plaguing the U.S. social media company currently.

Don’t Risk Money On SNAP Stock

It’s not clear if Snap can successfully emerge from the many problems it currently faces. But even if the company does manage to survive, it will likely take years for it to emerge on the other side and for its stock to recover from the downturn it has experienced since last autumn. But given the litany of issue Snap faces, there is no guarantee it will be able to overcome them all. Things could get worse in the months ahead, especially as the market downturn continues to pressure technology securities. For these reasons, investors would be best advised not to risk their capital on this social media company.

SNAP stock is not a buy.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.