Yes, they can work on many things simultaneously but it is worrisome when the execution of their core product fails [1] it shows a big management failure.
I would argue the opposite: their core product is great, best in market. However, due to the browser landscape, your core product is virtually WORTHLESS. Every browser does just enough right to be interchangeable, so unless you are drastically taking a new approach to browsing in general (and your brand), you have zero chance in hell without being able to leverage your own hardware/added services.
Market share is not always indicative of execution. There is a reasonable argument that their browser market share decreasing or not growing should prompt diversification of their business rather than doubling down on something that is not showing great returns on investment.
I am not saying that is always indicative of execution but I don't think Mozilla has any indicative of good execution? Hey, they invented a new programming language to reengineer the browser. The programming language is very succesful and it is growing in market share but Firefox continues to be written in C++.
IMHO there is a room for innovation in this space, long term but you can see if this happenning observing the project. Currently browser engines are one of the most complex pieces of software. There are new ways to attack these mammoths.
[1] https://www.google.com/search?q=firefox+market+share&oq=fire...