TWTR - Hot Stocks: Short seller goes long on TWTR; XELA gets takeover bid; FAST warning; VERI downgrade

Twitter ( TWTR ) moved back into the spotlight once again during Wednesday's midday trading. Shares rallied after a high-profile short seller took a long position in the stock, calling the firm's lawsuit a "credible threat" to Elon Musk's empire.

Meanwhile, Exela ( XELA ) was another notable midday gainer, boosted by news of a takeover offer.

Looking to the downside, Fastenal ( NASDAQ: FAST ) retreated after its earnings report included a cautious outlook. At the same time, an analyst's downgrade spurred selling in Veritone ( VERI ).

Gainers

A busy week for Twitter ( TWTR ) continued on Wednesday, with the stock rising 6% after Hindenburg announced that it has taken a long position in the company. The news comes after the social media giant filed suit against Elon Musk for breaking his takeover deal with the company.

Although known as a short seller, Hindenburg has taken a long position in this case, in part as a bet against Musk. The firm tweeted: "We have accumulated a significant long position in shares of Twitter. Twitter’s complaint poses a credible threat to Musk’s empire."

Exela ( XELA ) also showed intraday strength, bolstered by M&A interest. Shares rose more than 8% after the business process automation firm confirmed that it has received an acquisition proposal.

Decliners

Fastenal ( FAST ) endured selling pressure after the fastening distributor warned that it has seen signs of softening demand . Shares dropped more than 5% in intraday trading.

The company issued solid figures for Q2, matching expectations for earnings on revenue that rose 18% from last year. However, it also reported an increased inventory balance and "significant inflation."

Elsewhere, Veritone ( VERI ) also made the list of midday decliners, sliding 4% on an analyst's downgrade. Bank of America lowered its rating to Neutral from Buy , highlighting risks related to Amazon automation.

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