Not even remotely - they made out better on this than other recent IPOs.

They are paying 35 - 40 euros or ~$45 million at the midpoint. If they float $1 billion in shares today, that means fees are 4.5% of the overall “offering”, or almost exactly what Dropbox paid.

https://www.bloomberg.com/news/articles/2018-03-26/spotify-l...

1. Snapchat was listing, not raising capital. Until we see a similarly high-profile company try to raise equity (and I doubt we will), there's no reason to worry for IB.

2. If a client wants to buy/sell snapchat, the investment bank is still going to make broker fees on the transactions.