Wall Street is bracing for the slowest global revenue growth in the history of the social media sector, as intensifying competition from TikTok and Apple in advertising threaten to compound economic woes in the second quarter.

The dour expectations come after a blowout 2021, when social media ad sales in the United States grew 36 percent to reach $58 billion as brands increased marketing budgets to recover from the pandemic and reach customers online.

But social media platforms have since warned investors and employees that the tide is turning as inflation lingers around 40-year highs, an environment where brands spend less on advertising, a Reuters report stated.

Meta Platforms CEO Mark Zuckerberg told employees last month the company was slashing hiring plans and that “this might be one of the worst downturns that we’ve seen in recent history”.

Snap Inc., which owns Snapchat and is due to report earnings after the close, earlier said it expected to miss its own quarterly revenue forecast due to deteriorating economic conditions.

Global social media ad sales are now expected to grow by 11 percent, the slowest pace on record, according to media intelligence firm MAGNA, which downgraded the growth forecast from 18 percent.

Analysts had expected some degree of slowing growth after 2021. However, growing competition from viral short-form video app TikTok and Apple has created a “perfect storm” and “investors are rightfully wary” about digital ad growth this year, wrote Barclays analysts in a research note this month.