This is an animated reaction gif of an awkward exchange between Shooter McGavin (played by actor Christopher McDonald) and Happy Gilmore, in which Shooter doesn't know how to respond to one of Sandler's insults. Hence the "No! Damn..." I believe the conversation went something like:
Shooter: I eat pieces of shit like you for breakfast.
Gilmore: You eat pieces of shit for breakfast?
Shooter: No.... Damn...
This is from the movie Happy Gilmore (1996).