Latin America is a region that often struggles with inflation and, at times, political instability. With inflation higher worldwide, those issues have only become more concerning.

Nonetheless, the region can also present opportunities, and those conditions have not stopped Argentine e-commerce giant MercadoLibre (MELI -0.81%), which continues to thrive amid the turmoil. Not only did it post massive growth in revenue and earnings, but it also continues to bolster a business model that delivers for investors despite political challenges.

MercadoLibre in the third quarter

Indeed, from looking at MercadoLibre's Q3 results, it might look like the bear market never happened. Revenue of $2.7 billion rose 61% compared with the year-ago quarter on a currency-neutral basis.

The company's Q3 net income of $198 million surged 57% higher. A slightly faster growth rate in the cost of net revenues slightly reduced the company's earnings growth.

Admittedly, the bear market may catch up to the results soon. Analysts predict 47% revenue growth for 2022 and 24% in 2023. Also, that fear has already caught up to the stock price. Even with the rapid growth numbers, the internet and direct marketing retail stock has lost more than half its value since the summer of 2021.

How MercadoLibre thrives on Latin America's challenges

But even if it exhibits some slowing, MercadoLibre has shown it can thrive under challenging conditions. It created Mercado Pago when it needed a solution for its cash-only customer base to buy online. Mercado Pago was so successful that the company offered its services to buyers and sellers not buying from MercadoLibre.

Furthermore, it has found more ways to thrive because of Latin America's challenges. According to the IMF, inflation now exceeds 70% in its home market of Argentina. Still, Mercado Pago attracts customers because of rising prices as it pays interest on deposits. Also, through Mercado Credito, it can offer loans without the use of credit cards in the same business environment.

Value of Mercado Credito Loan Portfolio, 2019-2021.

Image source: MercadoLibre.

Such offerings appear to have boosted MercadoLibre's results. It processed more than $32 billion in payments during Q3, a 76% surge from the year-ago quarter.

Additionally, to address product delivery, it introduced Mercado Envios in some of its countries. This allows the company to store, package, and deliver packages for its clients, often with same-day or next-day delivery.

Also, the power of these e-commerce, fintech, and fulfillment segments seems to add synergies. Since they can work together to provide a more seamless buying and selling experience, MercadoLibre can better deal with companies such as Amazon and Sea Limited, each of which is trying to compete more actively in Latin America.

MercadoLibre is worth considering now

MercadoLibre continues to grow as if the bear market never happened. Revenue and earnings still increase at a rapid pace, and Mercado Pago drives much of that growth. And along with Mercado Envios, it has formed an ecosystem that can thrive in a difficult environment and address challenges from powerful competitors.

Moreover, since the bear market affected the stock, investors can buy this explosive growth stock at more than a 50% discount from the high. That increases the likelihood that the stock can deliver for investors as MercadoLibre transforms the retail, fintech, and logistics markets in its home region.