Celestica Faces Securities Fraud Investigation Amid Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy CLS?
Source: PRnewswire
Celestica Inc. saw its stock price drop by 5.00% as it hit a 5-day low, reflecting investor concerns amid broader market weakness.
The decline follows reports of an investigation by Pomerantz LLP into potential securities fraud by Celestica, which could undermine investor confidence and lead to further volatility. The investigation is linked to concerns that Google may shift assembly work for its tensor processing units to other suppliers, raising doubts about Celestica's future business prospects. As the investigation unfolds, the company's reputation may suffer, particularly in its partnerships with major clients like Google, potentially impacting future contracts and revenue expectations.
This situation highlights the increasing scrutiny over corporate governance and transparency in the tech sector, which may lead to heightened legal risks for Celestica. Investors are advised to stay informed as the investigation progresses.
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Analyst Views on CLS
Wall Street analysts forecast CLS stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 291.400
Low
330.00
Averages
387.38
High
440.00
Current: 291.400
Low
330.00
Averages
387.38
High
440.00
About CLS
Celestica Inc. is engaged in designing, manufacturing and providing hardware platform and supply chain solutions. It delivers supply chain solutions globally to customers in two operating segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of its ATS end market and comprises its Aerospace & Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. Its Capital Equipment business comprises its semiconductor, display, and robotics equipment businesses. The CCS segment consists of its communications and enterprise end markets. The enterprise end market consists of Celestica’s servers and storage businesses. It offers a range of product manufacturing and related supply chain services to customers in both of its segments, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, systems integration, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Optimistic Industry Outlook: Celestica anticipates revenues of $17 billion in 2026, a 37% increase from last year, and if its market value aligns with the Nasdaq index, it could reach $92 billion, showcasing its strong growth potential in the AI sector and attracting investor interest.
See More
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- Stock Price Decline: On January 22, 2026, Celestica's stock price fell by 6.08%, losing $18.83 per share to close at $290.92, following reports from Digitimes that Google may shift assembly work for its tensor processing units to other suppliers, reflecting market concerns about the company's future business prospects.
- Risk of Client Loss: Google's potential move could reduce Celestica's role in assembling AI servers, impacting its revenue streams and market share, which may further exacerbate investor anxiety.
- Potential for Legal Action: As the investigation unfolds, Celestica may face the risk of class action lawsuits, prompting investors to closely monitor developments to assess the potential impact on the company's financial health.
See More
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- Stock Sale Announcement: Officer Phillips Jason intends to sell 120,000 shares of its common stock on February 5.
- Market Value: The total market value of the shares being sold is approximately $33.1 million.
See More
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- Holding Status: This acquisition marks a new position for Chase, which did not previously hold shares in Clearwater, highlighting its strategy to diversify investments despite not being among the top five holdings.
- Market Performance: Clearwater's stock closed at $23.46 on February 4, with a market capitalization of $6.8 billion; however, the stock has declined by 17.4% over the past year, underperforming compared to the Nasdaq and S&P 500 indices, reflecting market caution regarding its future.
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See More
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- Stock Price Decline: Following Digitimes' report that Alphabet may shift assembly work for its tensor processing units to other suppliers, Celestica's stock fell 6.08% on January 22, 2026, losing $18.83 per share, reflecting market concerns about its future business prospects.
- Potential Impact: A reduced role in assembling Google’s AI servers could negatively affect Celestica's revenue and market share, exacerbating investor anxiety and uncertainty.
- Legal Consequences: As a prominent securities litigation firm, Pomerantz LLP may provide legal support to affected investors, and if wrongdoing is confirmed, Celestica could face substantial liability for damages.
See More
