Snap stock is facing a double-digit sell-off after earnings for the 5th straight quarter. Here's why investors are panicking.

• Snap stock dropped as much as 20% on Wednesday following bleak earnings.
• It's the fifth consecutive quarter the Snapchat parent has seen a double-digit decline after earnings.
• The stock is down almost 90% from its peak in 2021. 

Snap is making a habit of scaring investors with earnings reports.

Shares of the Snapchat parent crashed as much as 20% on Wednesday, marking the fifth consecutive quarter that the stock declined by double-digits after earnings. By midday in New York, Snap stock changed hands at about $10.10 per share.

Late Tuesday, the company reported second-quarter results that beat forecasts on the top and bottom lines, but its guidance for third-quarter sales was $1.07 billion-$1.13 billion, largely below analysts' views for $1.13 billion. 

Snap stock remains up about 14% this year, but it's nearly 90% its peak reached in November 2021. The company has faced slowing user growth and broad layoffs that reduced headcount by about 20%, similar to other tech firms in the last year.

"We are excited by the progress we have made delivering increased return on investment for our advertising partners, growing our community to 397 million daily active users, and reaching more than 4 million Snapchat+ subscribers," CEO Evan Spiegel said in a statement.

Apple's iOS privacy change in 2021 made it difficult for social-media companies to track users, weighing on ad revenue.

Rival Meta has fared better than Snap after the Apple update, and will report quarterly results after the close on Wednesday. Wall Street expects a continued rebound in revenue growth for the Facebook and Instagram parent.

Meanwhile, Alphabet stock swung in the opposite direction Wednesday, gaining 7% and adding $111 billion to its market valuation. The search giant reported a strong earnings beat for the second quarter, with revenue and operating income jumping 7% and 12%, respectively.