Jim Cramer was initially skeptical about Etsy, but as the company dramatically improved its fundamentals and user interface since first coming public in 2015, he changed his opinion.
"This kind of technology is so essential, especially if you have to go toe-to-toe with Amazon," the "Mad Money" host said.
Etsy took another step in its transformation when it announced the acquisition of Blackbird Technology for an undisclosed amount. Blackbird is a privately-held machine-learning company that delivers search relevance and recommendations.
Etsy is an online marketplace for handmade goods. It plans to use the artificial intelligence platform to direct customers to products they would likely buy, and enhance search functionality.
"We already have deep skills machine learning, because it's really hard to connect 40 million items to 26 million buyers around the globe," Etsy CFO Kristina Salen told Cramer on Tuesday, "But this augments our skill set and actually accelerates our progress in search, and we think it is going to drive future growth."