Microsoft Corp. (NASDAQ:MSFT) remained in focus Monday as investors weighed broader market pressure against the company’s push to turn Copilot into a larger workplace platform and revenue engine.

Microsoft shares traded slightly lower as rising Treasury yields and oil prices weighed on the broader market.

The company is expanding Copilot beyond an AI assistant by combining subscription pricing with usage-based charges for more demanding workloads.

• Microsoft shares are under pressure. Why is MSFT stock trading lower?

Microsoft Expands Copilot Beyond Chat

Microsoft Executive Vice President for Copilot Jared Spataro said the company wants Copilot to become the primary interface for workplace AI, similar to Office’s role during the PC era.

The revamped product combines Chat and Cowork with Code and Autopilot, allowing users to analyze information, create workplace tools and delegate longer-running tasks.

Spataro told CNBC on Friday that Microsoft employees are already using the new capabilities internally.

Cowork can analyze information across multiple sources, while Code lets non-technical employees build dashboards, widgets and other tools. Autopilot can manage recurring work and help users review emails and conversation threads through Teams.

Microsoft is also adding controls for autonomous agents. Each Autopilot receives its own identity, permissions and audit history, while certain actions, including sending or deleting emails and making purchases, require explicit human approval.

Usage-Based Model Opens New Revenue Stream

Microsoft plans to monetize Copilot through two complementary models.

Companies can purchase Copilot seats for everyday AI tasks, while heavier workloads involving Cowork, Code and Autopilot use consumption-based billing.

Oppenheimer analyst Brian Schwartz told CNBC on Saturday that the changes transform Copilot from a standalone chatbot into what he views as an AI operating system.

Schwartz said the shift could increase engagement, customer retention and monetization. He raised his price target on Microsoft to $570 from $515 and called the company a top pick.

Oppenheimer Sees Azure and M365 Upside

Schwartz believes Copilot gives Microsoft a clearer path to monetize heavier AI use across Azure and Microsoft 365.

He also highlighted Microsoft’s multi-model strategy, which works with providers including OpenAI, Anthropic and Muse.

Schwartz said Azure is growing in the low-40% range, with Microsoft guiding toward mid-40% growth this quarter. He believes acceleration toward roughly 50% growth at more than $100 billion of scale could support a re-rating of Microsoft shares.

Top ETF Exposure

The Vanguard Morningstar Growth ETF (NYSE:VUG) holds a 9.59% weight in Microsoft, while the Technology Select Sector SPDR ETF (NYSE:XLK) holds 9.83% and the iShares Core S&P U.S. Growth ETF (NASDAQ:IUSG) holds 9.75%.

Significant inflows or outflows from these funds can translate into buying or selling of Microsoft shares.

MSFT Price Action

Microsoft shares were down 1.35% at $509.38 at the time of publication on Monday, according to Benzinga Pro data.

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