Yahoo just announced its earnings, but the biggest news is that it will spin its stake in Alibaba out into a separate company.

The stock is up about 6% after hours as investors digest the news.

Earnings were more or less right on target with analysts' expectations:

Non-GAAP EPS of $0.30 vs. analysts expectations of $0.29. Last quarter Yahoo blew analysts' expectations away -- not so this time. Revenue (minus traffic costs) of $1.18 billion, slightly less than analysts' expectations of $1.19 billion. Display revenue was down 5% from last year, coming in at $464 million.

Click here to refresh for the latest. 

Overall, a very lackluster quarter, but investors seem happy with the Alibaba news.

Revenue at Yahoo has basically been declining since 2009, this quarter did nothing to reverse that slide. In fact, the fourth quarter is usually Yahoo's biggest, but it dropped slightly from last year.

Now that Alibaba is public and that chapter of Yahoo's history is basically closed, why should investors buy Yahoo today? Mayer hasn't given a convincing explanation yet, and the company's performance remains flat in its core businesses, but she has another chance on Yahoo's earnings call later today. We'll be updating this post as we hear more.

See Also:

An Analyst Says Everybody Thinks Marissa Mayer Is An Idiot She Isn'tWhen Marissa Mayer Became CEO Of Yahoo, She Let Thousands Of Employees Ditch Their BlackBerrys For 'Real' SmartphonesMarissa Mayer's New Rule For App Design