Meta reported third-quarter earnings on Wednesday, in which it said its Reality Labs unit, which develops augmented and virtual reality technologies, logged an operating loss of $4.4 billion. Analysts polled by StreetAccount were expecting that unit to post an operating loss of $4.68 billion.

Reality Labs revenue rose 29% year over year to $270 million in the third quarter, below analysts' expectations of $310.4 million. Reality Labs primarily makes money through selling Meta's Quest VR headsets and the Ray-Ban Meta smart glasses.