Apple Inc. (NASDAQ:AAPL) is a stock that in the past has proved less pliable to hedge fund manoeuvrings, as it does not shoot up or plunge on mere disclosures, partly because of the extreme noise around the stock and also the huge market cap. However today Carl Icahn has attempted just that—taking to his favorite mode of communication these days, he gladly tweeted that he has taken a position in Apple Inc. (NASDAQ:AAPL) and has talked to CEO Tim Cook, as well. In response shares of the tech giant were up as much as 6%, and that is not a small feat. Bloomberg reports that Icahn's position is worth more than $1 billion, that he has bought it over the last month, and this would equal to 0.2% of Apple Inc. (NASDAQ:AAPL). Icahn's fifth largest holding, Netflix, Inc. (NASDAQ:NFLX) was worth $1.04 billion at the end of Q1, so his position in Apple Inc. (NASDAQ:AAPL) is likely to fall around here.
Icahn planning a buyout of Nuance?
Icahn, who likes to scare the living daylights out of much smaller companies, like Dell Inc. (NASDAQ:DELL), Transocean LTD (NYSE:RIG) and Netflix, Inc. (NASDAQ:NFLX), has made a highly unusual move by buying Apple Inc. (NASDAQ:AAPL), the company with the largest market cap. Icahn's large position in Nuance Communications Inc. (NASDAQ:NUAN) comes to mind here, which was recently increased from 9% to 16% of the company's shares. Nuance is the brain behind Apple Inc. (NASDAQ:AAPL)'s last most successful claim-to-fame feature, Siri. The voice recognition system was engineered by Nuance Communications and proved to be a money maker for the communications company and made iPhone 4S a hit.
Putting this in perspective with the fact that Icahn does not buy positions in large companies, and that he has been quietly buying Nuance Communications Inc. (NASDAQ:NUAN) around the same time he was acquiring shares of Apple Inc. (NASDAQ:AAPL), one has to question if there is a proposed buyout of Nuance that is brewing in Icahn's mind. Siri may have made Nuance hot, but that is not the major earning arm of the company. The company drives the greater part of its revenue from providing solutions to healthcare industry. It does not seem likely that Apple Inc. (NASDAQ:AAPL) could be pushed to buy Nuance in whole, not to mention the fact that Apple Inc. (NASDAQ:AAPL) does not have a very rich history of making large acquisitions. Rumors that tech giants like Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT) could be interested in buying Nuance have been circulating before Icahn's position in Apple Inc. (NASDAQ:AAPL) was disclosed.
Fidelity contrafund slashed
Fidelity must be banging their heads on the wall now, as their Contafund just slashed its major stake in Apple Inc. (NASDAQ:AAPL) a few weeks ago. It also seems that David Einhorn will finally stop bleeding on his investment in Apple Inc. (NASDAQ:AAPL) which has proved to be the most acute source of losses for his hedge fund, Greenlight Capital. Einhorn came out of an acttivist run at Apple Inc. (NASDAQ:AAPL) recently, where he proposed that the company issue a new kind of preferred shares, an idea that he has given up for now. The formidable Carl Icahn has come to rescue all the Apple Inc. (NASDAQ:AAPL) loyals out there now.