Investors are learning that online advertising stocks may be just as vulnerable as old-school media companies amid a looming potential economic downturn.

Concerns over the sector have grown since Snap Inc. slashed its forecast in May, warning that a weaker economic outlook was weighing on its ad business. That sparked a selloff of more than 40%, its biggest one-day drop ever, and the stock is now down almost 70% in 2022. The parent of Snapchat releases second-quarter results Thursday after the market closes.

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