NEW YORK (TheStreet) -- Management tried to put a positive spin on it, but the results just weren't what shareholders wanted to see. Shares of Apple (AAPL) tumbled in after-hours trading Monday after reporting first-quarter earnings and are currently down over 7% Tuesday. 

David Nelson, chief market strategist at Belpointe Asset Management, told TheStreet's Debra Borchardt Apple's first-quarter results were good and guidance was a little light, but guidance from Apple is always a little light. 

The problem was iPhone sales, which still topped 50 million units but failed to meet Wall Street's expectations of 54 million, he explained. 

Nelson pointed out the company failed to materially grow profits, which is hard for a company that's the size of Apple. Although earnings per share increased, that was helped by Apple's sizable stock buyback program. 

Nelson thinks Apple should follow hedge fund manager Carl Icahn's advise and increase the share buyback, especially when you consider the company's "obscene" pile of cash, which surpassed $159 billion in the latest quarter. 

Unless Apple has some huge plan it's still keeping under wraps, or wants to buy all of its suppliers,  the company simply has no reason not to buy back more stock, he said. Apple appears to be playing "not to lose" rather than playing to win. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.