Earnings season for the tech sector has officially begun. Netflix, Tesla and IBM kicked off the season -- and as Ark Invest's favorite CEO broke down Tesla's quarter, Ark broke down its own quarterly performance.
And after a rough performance last year, which saw Ark down more than 60%, the innovation-focused investment firm had a pretty strong few months.
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The phrase of Ark's report, repeated five times under most of Ark's ETFs was: "outperformed broad-based global equity indexes." Ark's flagship Innovation ETF (ARKK) -) was up around 9.5% for the quarter ending June 30. The fund was up 41.3% for the year so far and is up a little more than 10% since its inception.
Ark's Next Generation Internet ETF was similarly up 9.4% for the quarter, 52% for the year so far and 15.8% since its inception. And the firm's Autonomous Technology & Robotics ETF was up just under 12% for the quarter, 37% for the year and 13% since inception.
And the biggest driver behind the growth of all three of these ETFs was Tesla.
Tesla (TSLA) -) -- which is the largest holding by weight in the Innovation and Autonomous ETFs -- moved Ark's Autonomous ETF in the amount of 373 basis points and Ark's Next Generation Internet ETF by 232 basis points. Shopify, Nvidia, Exact Sciences and Unity Software were some of the other winners that helped make Ark positive for the quarter.
PagerDuty and Zoom, meanwhile, were two of the firm's biggest detractors.
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Ark Innovation holds more than a billion dollars in Tesla, weighted at 10.99% of the fund. Ark Next Generation Internet owns around $106 million in Tesla, weighted at 6.44% of the fund. And Ark Autonomous owns around $175 million in Tesla, weighted at nearly 15% of the fund.
Tesla reported a 47.2% increase in revenue from last year, posting a record $24.5 billion in revenue for the quarter. But the company's margin fell to 18.2% amid price cuts.
Tesla stock -- which recently surpassed (and then dipped below) a $900 billion valuation -- was down more than 6% Thursday following the earnings report.
And, as much as Ark Invest loves Elon Musk, Musk seems to be a fan of the investment firm as well, suggesting on the earnings call that investors look at Ark for their analysis of Tesla, which he said was "very good."
