Why Alphabet Stock Popped Today

By Rich Smith – Mar 31, 2026 at 1:04PM ESTKey PointsOpenAI shuts down Sora and...Just days later, Alphabet cuts the cost of Veo.Coincidence?So long, Sora -- we hardly knew ya -- and while we're on the subject -- hello Veo! Earlier this week, artificial intelligence pioneer OpenAI announced it's shutting down its Sora video generation project to cut costs and conserve computing power for more business-focused projects, which it hopes to sell to paying corporate clients. No sooner did Sora fall down, though, than Alphabet (GOOG +4.63%) (GOOGL +4.80%) came up and kicked it. Alphabet stock is up 4% at 1 p.m. ET. Image source: Alphabet. Get to know Veo In a blog post this morning, Alphabet announced it is introducing a new and cheaper version of its own Veo video-generating tool. Dubbed Veo 3.1 Lite, "this model empowers developers to build high-volume video applications," says Alphabet. What's more, it will be available at just half the cost of the company's Veo 3.1 Fast product. And here's the kicker: Despite the difference in names, Veo 3.1 Lite will be just as fast as Veo Fast! Does it seem a bit suspicious to you that Google would make this announcement just days after OpenAI exited the field? It does to me. It actually seems like Google is taking advantage of its opponent's misfortune to grab market share and dominate the field of AI video production while OpenAI is preoccupied with sprucing up its financials in preparation for its IPO. Adding to my conviction on this point, Google announced it will cut the price of Veo 3.1 Fast as well, by one third, effective April 7. (Google's top-of-the-line Veo3.1 -- neither Fast nor Lite -- will retain its usual price: $0.40 per second of video.) ExpandNASDAQ: GOOGAlphabetToday's Change(4.63%) $12.65Current Price$285.79Key Data PointsMarket Cap$3.3TDay's Range$276.82 - $287.0252wk Range$142.66 - $350.15Volume560KAvg Vol22MGross Margin59.68%Dividend Yield0.31% What this means for Alphabet stock OpenAI's exit doesn't leave the AI video-generation field entirely open to Google -- but it helps. With arguably its biggest competitor in retreat, this business is Alphabet's to lose.Read NextMar 31, 2026 •By Matt DiLalloHow to Use AI to Make Money in 2026Mar 31, 2026 •By Benjamin LockeWho Owns YouTube? Largest Shareholders & Board of DirectorsMar 28, 2026 •By Neil PatelStreaming Wars: 1 Netflix Rival Dominating the IndustryMar 28, 2026 •By Marc Guberti2 Safe Stocks to Buy in Times of UncertaintyMar 27, 2026 •By Parkev Tatevosian, CFAIs Alphabet Stock Still a Buy?Mar 26, 2026 •By Travis HoiumGoogle's Massive AI Win: OpenAI Gives Up on VideoAbout the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedAlphabetNASDAQ: GOOG$286.08(+4.74%)+$12.94AlphabetNASDAQ: GOOGL$286.94(+4.91%)+$13.44*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.