EBay has forecast first quarter revenue below analysts' estimates as the e-commerce company faces fierce competition from Amazon.com and Walmart. 

Facing stiff competition in its marketplace business, eBay has shifted focus to its advertising and payments businesses.

It has also worked to make its platform simpler to use by adding features such as grouped listings and personal recommendations. 

EBay slashed nearly $116m in marketing expense in the fourth quarter in line with its continued effort to cut costs.

The company is also reeling under pressure from activist investors to hive off some of its businesses to improve profitability. 

Following pressure from Elliott Management and Starboard Value, eBay in November agreed to sell its ticketing unit, StubHub, for $4.05 billion to ticket reseller Viagogo. 

For the first quarter, eBay said it expects revenue of between $2.55 billion and $2.60 billion, while analysts were expecting $2.64 billion, according to IBES data from Refinitiv. 

However, the company's revenue of $2.82 billion in the fourth quarter came in above analysts' expectation of $2.81 billion. 

Gross merchandise volume, which is the value of goods sold on its websites within a certain time frame, fell 5% to $23.3 billion. 

EBay said active buyers grew 2% to 183 million in the quarter from a year earlier, but they remained unchanged from the third quarter.

Growth in active buyers was impacted by the reduced marketing spend and a higher churn than what the company had expected, the company's chief financial officer Andrew Cring said on a post-earnings call. 

Net income from continuing operations fell to $558m, or 69 cents per share, in the quarter ended December 31, from $763m, or 80 cents per share, a year earlier. 

On an adjusted basis, the company said it earned 81 cents per share, above the average analyst estimate 76 cents.