The Five Dumbest Things on Wall Street This Week

4. Openwave's Washout

How quickly the momentum has ebbed at Openwave (OPWV Quote - Cramer on OPWV - Stock Picks).

Shares in the Redwood City, Calif., communications-software shop have plummeted 71% in three months. Wall Street has been wondering whether Openwave is fit enough to take on big rivals like Ericsson (ERICY Quote - Cramer on ERICY - Stock Picks) -- concerns that weren't eased by a debacle Wednesday.

That afternoon, just as tech investors were being deluged with earnings reports from Apple (AAPL Quote - Cramer on AAPL - Stock Picks), eBay (EBAY Quote - Cramer on EBAY - Stock Picks), Intel (INTC Quote - Cramer on INTC - Stock Picks) and Motorola (MOT Quote - Cramer on MOT - Stock Picks), Openwave issued a press release innocently headlined, "Openwave Announces Fourth Quarter Fiscal 2006 Conference Call."

It's the kind of release that might easily get lost in the shuffle on a busy afternoon. But beyond noting the timing of the Aug. 3 call, Openwave's statement also notes the postponement of annual analyst day -- and warns of soft first-quarter revenue.

"The company is currently completing its annual operating plan for fiscal 2007 and will present key aspects of the plan at the rescheduled analyst day," Openwave says. It then adds tersely, "Openwave expects fiscal Q1 2007 revenues will be flat to modestly below the prior quarter."

The warning, which knocked 14% off Openwave stock Thursday, came just two weeks after Openwave trimmed fourth-quarter guidance.

"While the results for the quarter are disappointing, overall the company has delivered a solid financial year," CEO David Peterschmidt said July 6. "We continue to see customer momentum worldwide and are confident in our strategy as we enter fiscal 2007."

We're guessing Openwave is less confident in that strategy now.

Dumb-o-Meter score: 82. We'll make a note to check back in another two weeks.