Amazon posted a monster quarter with a net income of $2.9 billion on revenues of $127.1 billion, with AWS surging 27 percent to $20.5 billion.

“It’s clear that particularly during these uncertain economic times, customers appreciate Amazon’s continued focus on value and convenience,” Amazon CEO Andy Jassy said. “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 the obstacles it faces in e-commerce—customers are spending less and its operations cost more—Amazon survived a difficult summer by hosting two Prime Day sales events in the quarter, one in July and one in September, the first time it’s done so. The results were better than expected, with revenues rising 15 percent year-over-year (YOY). But operating profit fell nearly 50 percent to $2.53 billion, with almost all of the profit coming from AWS.

More problematically, Amazon warned that the current quarter will be terrible, sending its shares tumbling 19 percent. The firm said that it might not even be profitable in the quarter, with expected revenues in the $140 billion and $148 billion range.