What happened

Even as the market turned sharply lower on Monday, shares of MercadoLibre (MELI 0.85%) charged higher, gaining as much as 6.1%. When the market closed, the stock was still up 4.8%. This came even as the S&P 500 fell 0.9% and the Nasdaq Composite slumped 1.5%.

There were a couple of catalysts that helped fuel the e-commerce and fintech specialist's rise, including Argentina's soccer World Cup win and a decision by Brazil's Supreme Court that will benefit the country's poor.

So what

Brazil's Supreme Court granted a temporary injunction that allowed President-Elect Luiz Inacio Lula da Silva to continue welfare payments to low-income Brazilians. This was a victory for the incoming president, allowing him to deliver on a key campaign promise. 

The decision removed the 600-reais (roughly US$113) monthly allowance from the country's constitutional spending cap, allowing payments for the underprivileged in Brazil to continue.

MercadoLibre derives more than half its revenue from customers in Brazil, which amounted to $3.9 billion last year. By lifting the spending cap, low-income Brazilians will have more money to spend during the holiday season.

Another positive development was Argentina's World Cup win this weekend. Previous winning countries have experienced a 0.25% increase in their economic growth following the soccer competition. Furthermore, there's a more immediate benefit, as excited fans take to the streets to celebrate Argentina's historic victory, spending as they go. 

MercadoLibre will likely benefit from both, as its customers could increase their spending in two of the company's biggest markets. 

Now what

These developments notwithstanding, there are plenty of other reasons for investors to add MercadoLibre to their holiday gift lists.

In the third quarter, MercadoLibre generated record revenue of $2.7 billion, up 61% year over year. The results were driven by e-commerce sales that grew 33% and fintech revenue that rocketed 115%. At the same time, however, MercadoLibre's stock has fallen 35% compared to its high of late last year, driven lower by the bear market.

Given MercadoLibre's enviable growth and ongoing catalysts, investors with a long-term outlook should buy the stock now.