Google’s cloud business has big opportunity ahead once it adds capacity. Meanwhile the stock is cheap relative to historical levels.

Class A shares of Alphabet Inc (NASDAQ: GOOGL) are up 3.3% at $164.52, after the Google and YouTube parent topped Wall Street expectations with its first-quarter report. The company posted earnings of $2.81 per share on revenue of $90.23 billion, beating analyst estimates of $2.01 per share and $89.12 billion.

Google parent Alphabet is set to report first-quarter results after the market closes Thursday, with analysts largely bullish on the tech giant's ability to weather economic uncertainty.