Meta's Reality Labs lost over $4.6 billion in second quarter

Meta’s Reality Labs unit, which develops virtual reality devices and wearables powered by AI, lost $4.62 billion in the latest quarter. In its second-quarter earnings report on Wednesday, Meta said Reality Labs generated revenue of $431 million, up from $370 million a year earlier, while its operating loss widened from $4.53 billion a year ago. Analysts polled by StreetAccount were expecting a second-quarter loss of $5.07 billion on revenue of $423.4 million. Reality Labs builds the Quest-branded VR headsets and Ray-Ban Meta glasses. The division has generated over $80 billion in total operating losses since late 2020. Meta CEO Mark Zuckerberg changed Facebook's name to Meta in 2021, underscoring his bet that people would live, work and play in digital worlds. However, the VR market failed to catch on with consumers, resulting in Meta refocusing Reality Labs to devices like the Ray-Ban Meta glasses it develops with eyewear giant EssilorLuxottica.