Microsoft Corp. (NASDAQ:MSFT) stock rose almost 1% in Wednesday premarket trading as investors weighed new Copilot discounts to accelerate adoption among large corporate customers.

Nasdaq futures slipped 0.02%, while S&P 500 futures gained 0.07%.

Microsoft Cuts Copilot Prices For Large Customers

The company plans to offer discounts of 30% to 50% on Copilot subscriptions for large corporate customers, The Information reported Tuesday.

The discounts could begin as soon as October and will target customers committing to large seat purchases and additional usage-based payments.

Microsoft is also preparing to launch a revamped Copilot “super app”, potentially as soon as this week. The app will combine AI coding tools and agent features, with some capabilities carrying extra usage-based fees.

Copilot starts at $30 per user per month. Microsoft plans to offer about 30% off for customers with more than 1,000 seats and up to 50% off for those buying more than 10,000 seats.

The company had previously offered discounts of about 10% to some customers buying at least 2,000 seats, the report added.

Copilot Expands Beyond Chat

Microsoft said in July that Microsoft 365 Copilot surpassed 30 million paid seats, with net seat additions more than doubling quarter over quarter as engagement and user satisfaction improved.

CEO Satya Nadella said Copilot is evolving from a chat assistant into autonomous AI agents. The company is also combining its Copilot experiences and coding capabilities into a single app for consumers and businesses.

Microsoft Technical Analysis

MSFT stock remains above several key moving averages, keeping its broader uptrend intact. Investors are now watching whether it can extend its gains toward nearby resistance.

The stock is trading about 0.9% above its 20-day simple moving average of $498.96. It is also 7.3% above its 50-day SMA of $469.15 and 16.6% above its 200-day SMA of $431.76.

Its relative strength index stands at 54.82. That points to neutral momentum, with shares neither overbought nor oversold.

MSFT’s 20-day SMA remains above its 50-day SMA. The stock also recorded a golden cross in August, when its 50-day average moved above its 200-day average.

Near-term resistance sits around $513.50. Support is near $486.

Analyst Outlook

Microsoft trades at a price-to-earnings ratio of about 27.7. The stock carries a Buy consensus rating, with an average price forecast of $567.04.

Stifel upgraded Microsoft to Buy on Wednesday and raised its price target to $575. Oppenheimer on Tuesday reiterated an Outperform rating and lifted its target to $570. Cantor Fitzgerald on Monday maintained an Overweight rating and raised its target to $608.

Microsoft Benzinga Edge Rankings

MSFT scores strongly on growth, quality and momentum in the Benzinga Edge scorecard.

Its Growth score stands at 96.92 out of 100, while Quality is 86.35 and Momentum is 83.08. However, its Value score is much lower at 23.45.

The readings suggest MSFT continues to benefit from strong growth and momentum, while valuation remains a potential constraint.

Top ETF Exposure

MSFT is also a major holding in several large growth and technology ETFs.

The Vanguard Growth ETF (NYSE:VUG) has a 9.59% weighting in MSFT. The Technology Select Sector SPDR Fund (NYSE:XLK) has a 9.83% weighting, while the iShares Core S&P U.S. Growth ETF (NASDAQ:IUSG) has a 9.75% weighting.

MSFT’s large weight means sizable ETF inflows or outflows can contribute to buying or selling pressure in the stock.

Microsoft Price Action

Microsoft shares were up 0.72% at $501.60 in Wednesday’s premarket trading, according to Benzinga Pro data.

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