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Meta Platforms' (FB) Instagram Faces Ban in Russia From Mar 14

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Meta Platforms owned social media service, Instagram, is set to be effectively banned in Russia from today. Russian authorities took this decision to counter Meta’s decision to allow violent posts against Russian forces.

The Russian state communications’ regulator has asked its citizens to move their photos and videos from Instagram before it was shut down to Russian internet platforms.

Per Independent, which quoted the communications regulating agency in Moscow, Russian authorities are opposing Meta’s decision to allow posts that threaten Russian citizens’ safety on Meta-owned Instagram and Facebook.

Russian authorities launched a criminal investigation against Meta on Mar 11 while prosecutors have asked a court to mark Meta as an extremist organisation.

Instagram Ban to Affect Millions of Users

Meta Platform’s president of global affairs, Nick Clegg, has defended the company's policy against the Russian authorities’ complaints. He stated that Meta’s policies do not support Russophobia or any sort of violence against Russian citizens on their platform.
    
The changes to standard content policies by Meta are more directed toward Ukrainians as the company is supporting people’s rights to speech as self defence against military aggression in their country.

Instagram’s ban in Russia will affect nearly 80 million users. Meta previously banned Russian state media outlets, RT and Sputnik, on its platforms across European Union. In retaliation, Russia had also banned Facebook previously.

Per a recent statement by Meta’s chief financial officer, Dave Wehner, the crackdown by Russia on Instagram and Facebook would cost the company nearly $2 billion in sales. Russia accounts for 1.5% of Meta’s advertising dollars, thus affecting the company’s top line in fiscal 2022.

Meta Platforms, Inc. Price and Consensus

In the last trading session, Meta’s shares have closed at 3.89% down on Mar 11, 2022. In the year-to-date period, Meta’s shares have fallen 44.3%, underperforming the Zacks Internet – Software industry’s fall of 39.6% and the Zacks Computer and Technology sector’s fall of 18.9%.

However, in efforts to support people suffering from the ongoing invasion, other Computer and Technology sector giants like Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) have also taken certain steps:

Alphabet-owned Google stated that the company has blocked access to Russian state-funded media globally, and removed content about Russia’s invasion in Ukraine that violates its policy of denying well-documented violent events.

Google has removed 1,000 channels and over 15,000 videos from YouTube as a result of violating the company’s hate speech policy.

Apple also followed suit and blocked live traffic and incident reporting regarding Ukraine in collaboration with local authorities. In a move similar to Meta, Apple has also blocked access to state media apps like RT News and Sputnik in all App Store regions outside of Russia.

Further, Apple also paused product sales and stopped exports to its Russian sales channel.

Zacks Rank and a Stock to Consider

Meta currently carries a Zacks Rank Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here is a better-ranked stock worth considering in the broader Computer and Technology Sector.

Axcelis Technologies (ACLS - Free Report) carries a Zacks Rank #1 (Strong Buy).

Axcelis shares have fallen 14.9% in the year-to-date period, outperforming the Zacks Electronics - Manufacturing Machinery industry’s and the Computer and Technology sector’s declines of 16% and 18.9%, respectively.


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