Bank of America Securities said in a research report that it is cautious about the advertising environment and Meta Platforms (NASDAQ:META) this year, as the platform’s shift to Reels and capital spending could undermine EPS growth when the advertising market improves. Advertising revenue growth in the US accelerated in the fourth quarter, leverage and earnings per share are rising as the advertising environment improves, the competitive environment also improves, and the Group may become part of the artificial intelligence (AI)/machine learning (ML) improvement cycle following excess capital expenditures and GPU investments in 2022/23. The bank assumed that the global online advertising market accelerated, and that Meta could grow faster with AI/ML-assisted Reels monetization, raising its EPS estimate for the year by 13% to $9.82 from $8.72.