Apple's April product sales plummeted by 18%! But Wall Street still remains optimistic.

KeyBanc Capital Markets said investors should not focus on short-term fluctuations in Apple's sales because the company's long-term fundamentals remain strong.

Analyst Brandon Nispel reiterated his buy rating on Apple and a target price of $180.

The analyst cited the company's recent credit card data, which showed that spending on Apple products in April fell 18% month-on-month, compared with an average month-on-month increase of 4% over the past three years. He warned that this is only one month of data, but second-quarter product revenue is expected to be below Wall Street's expectations.

Wall Street is generally bullish on Apple

But Nispel is optimistic that over time, Apple's user growth and ecosystem will drive the company's profitability and growth.

Earlier this year, Apple announced that its active device install base had exceeded 2 billion.

During the second-quarter earnings call, Apple management also said that paid subscriptions on its platform, including Apple Music, Apple TV+, and iCloud, had reached 975 million, twice the number three years ago.

He said, "The data tells us that growth in the second quarter is expected to be below average." "We remain cautious, but believe that Apple's user growth and capital return story will continue."

Earlier this month, Apple reported better-than-expected second-quarter earnings. The company also authorized a $90 billion stock buyback and increased its dividend for the 11th consecutive year, promising to increase it every year in the future.

According to FactSet data, 76% of analysts who follow Apple rate it as a "buy" or equivalent, while 19% rate it as a "hold".