PayPal (PYPL +2.19%), one of the world’s largest digital payment companies, was once a promising growth stock. It closed at an all-time high of $305.13 on July 23, 2021, marking a 651% gain from its opening price of $40.60 following its spin-off from eBay (EBAY +1.47%) on July 20, 2015. But today, it trades at about $52.

Should you buy, sell, or hold PayPal’s stock after that 80% decline? Let’s review its challenges, potential catalysts, and valuations to decide.

Image source: PayPal.

Why are PayPal’s high-growth days over?

PayPal’s troubles started in 2018, when eBay announced it would gradually switch to Adyen (ADYEY -3.54%) as its preferred payment provider by 2023. Its growth during the pandemic temporarily offset that pressure,…