Kashkari: Microsoft a Defensive and Growth Play

Microsoft remains an innovator that won’t be bogged down by headwinds facing other names in the PC space, PIMCO Head of Global Equity Strategy Neel Kashkari said Wednesday on CNBC.

“Microsoft does not have to struggle just because HP and Dell are struggling,” he said on “Fast Money.”

Kashkari noted that Microsoft still stands to gain as people move away from PCs and toward tablets and that it generates $20 billion per year in free cash flow.

(Read More: Hewlett-Packard Says Revenue Will Fall in 2013)

“Microsoft is much more than just Windows. People forget that its server business is just about as big as its Windows business — its Office products. There’s still no alternative to Word, to Excel, to Powerpoint. It’s got Xbox. It’s got Internet Explorer. It is trying to innovate in lots of different ways,” he said.

(Read More: Microsoft Facing Harsh Headwinds: Dan Niles)

“We think Microsoft is a very good long-term holding.”

Kashkari also said that Microsoft provided protection as a defensive play along with potential P/E growth.

(Read More: Kashkari: Bernanke ‘Leaning Forward’ on QE3)

“We think Microsoft is going to be more resilient against some of those different macro risks. And if they do get some of these growth opportunities right, there is upside from there. It’s good defensive name,” he said. “Even if it just muddles along it’s still going to return a lot of cash to shareholders, and we like that.”

(Read More: Citi Analyst Predicts ‘Worst 3Q Ever in PC History’)

Written by Bruno J. Navarro, CNBC.com Producer.

Trader disclosure: On Oct. 3, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Najarian is long AAPL; Jon Najarian is long BAC; Jon Najarian is long FB; Jon Najarian is long AMZN; Jon Najarian is long GOOG; Jon Najarian is long BBY; Jon Najarian is long LEN; Jon Najarian is long NFLX; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Brian Kelly is long QQQ; Brian Kelly is long NAT GAS; Brian Kelly is long UNG; Brian Kelly is long GLD; Brian Kelly is long SLV; Brian Kelly is long COPPER; Brian Kelly is long JJC; Stephen Weiss is long AIG; Stephen Weiss is long VZ; Stephen Weiss is long VOD; Stephen Weiss is long T; Stephen Weiss is long QOM; Stephen Weiss is long HK; Stephen Weiss is long UGL; Stephen Weiss is short AAPL PUTS; Stephen Weiss is short VALE; Stephen Weiss is short AKS; Stephen Weiss is short BHP.

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