Amazon’s third-quarter results met expectations, but its fourth-quarter guidance disappointed Wall Street.

Amazon reported $127.1 billion in net sales for the quarter, a 15% increase over the year-ago quarter. The company’s net income came in at $2.9 billion, or $0.28 per diluted share. While this was a decrease from the year-ago quarter, it still beat expectations.

Despite the results, the stock took a hit on weak fourth-quarter guidance. While analysts were expecting estimates of $155 billion, the company’s guidance came in at $140 to $148 billion.

CEO Andy Jassy emphasized the company’s focus on lowering costs and improved Prime Member deals.

“In the past four months, employees across our consumer businesses have worked relentlessly to put together compelling Prime Member Deal Events with our eighth annual Prime Day and the brand new Prime Early Access Sale in early October. The customer response to both events was quite positive, and it’s clear that particularly during these uncertain economic times, customers appreciate Amazon’s continued focus on value and convenience,” said Jassy. “We’re also encouraged by the steady progress we’re making on lowering costs in our stores fulfillment network, and have a set of initiatives that we’re methodically working through that we believe will yield a stronger cost structure for the business moving forward. There is obviously a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets. What won’t change is our maniacal focus on the customer experience, and we feel confident that we’re ready to deliver a great experience for customers this holiday shopping season.”

Despite Jassy’s optimism, Amazon’s stock dropped almost 20% following the report.

According to GeekWire, CFO Brian Olsavsky warned there may be more bad news to come.

“We are preparing for what could be a slower growth period.”