Hot Stocks: Short seller goes long on TWTR; XELA gets takeover bid; FAST warning; VERI downgrade
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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. Twitterâs complaint poses a credible threat to Muskâs 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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