Based on the stories I'm reading there is a little confusion about whether Yahoo's profits were up or not.
The Wall Street Journal says yes: "Yahoo Profit Lifted By Alibaba Gain"
MarketWatch say no, they were artificially grown by IPO and takes the China angle: "Yahoo's earnings boosted by China holdings"
TheStreet says hell, yes: "Yahoo!: How Do You Like Us Now?"
All in all it's a bit confusing- a result, I'd guess, of armies of Microsoft and Yahoo flacks arguing opposite points as Yahoo tries to maneuver itself into a higher valuation.