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Why Is Wall Street Punishing Clearwire?

It would be unethical of me to offer stock tips in this space, so I'll just phrase this as a question: Why is Wall Street hammering Clearwire Corp.? After reaching a high of $33.30 on July 19, the share price for the WiMax network startup has declined 37%. And on Tuesday the stock dropped 7% "on no news whatsoever," as The Motley Fool put it.
It would be unethical of me to offer stock tips in this space, so I'll just phrase this as a question: Why is Wall Street hammering Clearwire Corp.? After reaching a high of $33.30 on July 19, the share price for the WiMax network startup has declined 37%. And on Tuesday the stock dropped 7% "on no news whatsoever," as The Motley Fool put it.Actually, there was news that day related to Clearwire, and it was good. EarthLink announced that it is slashing half its workforce and effectively abandoning the municipal Wi-Fi market. Since EarthLink was the highest-profile company contracting to build citywide wireless networks, its exit has thrown the whole future of muni Wi-Fi into doubt.

How's that good for Clearwire? Well, let's number the ways.