Alphabet sustained >20% constant currency growth for the 12th consecutive quarter, generating $33bn in gross revenue during 2Q18 and beating expectations on both top and bottom lines. We continue to see Alphabet as the dominant player in advertising -- digital or otherwise -- and expect the company to continue to take share of that market. However, gradually rising operating costs and significant ongoing capital expenditures lead us to our relatively neutral view on the stock. Our updated valuation is $1080 on a YE2018 basis vs. $1050 previously and we continue to rate the stock Hold.
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